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According to a survey conducted by Netpop Research, 65% of new car buyers use on

ID: 3206152 • Letter: A

Question

According to a survey conducted by Netpop Research, 65% of new car buyers use online search engines as part of their car-buying experience. Another study reported that 11% of new car buyers skip the test drive. Suppose 7% of new car buyers use online search engines as part of their car-buying experience and skip the test drive. If a new car buyer is randomly selected, what is the probability that:

(Round your answers to 2 decimal places.)

a. the buyer used an online search engine as part of the car-buying experience or skipped the test drive?
b. the buyer did not use an online search engine as part of the car-buying experience or did skip the test drive?
c. the buyer used an online search engine as part of the car-buying experience or did not skip the test drive?

Explanation / Answer

let probabilty of new car buyers use online search=P(OS)=0.65

and probabilty of new car buyers skip test drive =P(ST)=0.11

here P(OS & ST)=0.07

a)probability that the buyer used an online search engine as part of the car-buying experience or skipped the test drive =P(OS UST)=P(OS)+P(ST)-P(OS & ST)=0.65+0.11-0.07=0.69

b)probability that the buyer did not use an online search engine as part of the car-buying experience or did skip the test drive =1-P(OS &ST)=1-0.07=0.93

c)probability that the buyer used an online search engine as part of the car-buying experience or did not skip the test drive =1-P(ST)+P(TS & OS) =1-0.11+0.07=0.96

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