A large retail store sells MP3 players. A customer who purchases an MP3 player can pay either by cash or credit card. An extended warranty is also available for purchase. Suppose that the events M = event that the customer paid by cash E = event that the customer purchased an extended warranty are independent with P(M) = 0.47 and P(E) = 0.16.
a. Construct a “hypothetical 1000” table with columns corresponding to cash or credit card and rows corresponding to whether or not an extended warranty is purchased.
b. Use the table to find P(M ∪ E). Give a long run relative frequency interpretation of this probability.