Arnie works at Xenon Software at the Smalltown Mall, and wishes to figure out ho

Question

Arnie works at Xenon Software at the Smalltown Mall, and wishes to figure out how best to push the software products in the store. Over the past year, he has observed the following pattern: 60% of his customers buy game software (e.g., Sims, Enter the Matrix, Everquest, etc.) 30% buy productivity software (e.g., Microsoft Word, Excel, Quickens, etc.) 15% buy both game and productivity software Using his knowledge of buying habits, Arnie tries to predict what his customers are likely to purchase so that he can make the appropriate sales pitch to them. Help Arnie out with the following customers. Bill and Ted come into the store to purchase software. Without any additional information about them, what is the probability that they will both buy game software? (a) 0.25 (b) 0.36 (c) 0.50 (d) 0.67 (e) 0.90 Angela comes into the store to purchase software. Without any additional information, what is the probability that she will buy either game or productivity software? (a) 0.15 (b) 0.25 (c) 0.50 (d) 0.75 (e) 0.90 (3) Zephyr comes into the store to purchase software. She always buys the latest games when she's at Xenon. Given this information, what is the probability that she will also buy some productivity software too? (a) 0.15 (b) 0.25(c) 0.50 (d) 0.75 (e) 0.90

Explanation / Answer

P(Only game ) = 0.60-0.15 = 0.45

P( Only productivity) = 0.30-0.15=0.15

P(Both) = 0.15

1) P( A and B buy game) = P(Game)^2 = 0.6^2=0.36. So, B is the correct answer

2)P(Either game or productivity) = 0.45+0.15 = 0.60. So, C is the correct answer

3) P( Productivity/Game) = P(Productivity and game)/P(Game) = 0.15/0.6=0.25. So, B is the correct answer

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