1) The option to buy extended warranties is commonplace with most electronics purchases. But does the type...
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Question:
1) The option to buy extended warranties is commonplace with most electronics purchases. But does the type of purchase affect a consumer’s willingness to pay extra for an extended warranty? Data for 420 consumers who purchased digital cameras and laptop computers from a leading electronics retailer are summarized in the table. The probability that a consumer purchases a digital camera and an extended warranty is:
Purchased Warranty
yes | no | total | |
Digital camera | 30 | 42 | 72 |
Laptop computer | 145 | 203 | 348 |
Total | 175 | 245 | 420 |
A. .07
B. .42
C. .58
D. .17
E. .83
2) Given the same contingency table above, the probability that a consumer purchases an extended warranty given that he/she has purchased a digital camera is:
A. .07
B. .42
C. .58
D. .17
E. .83
Related Book For
Intermediate Microeconomics and Its Application
ISBN: 978-1133189039
12th edition
Authors: Walter Nicholson, Christopher M. Snyder
Posted Date: