In conducting a market potential study for a manufacturer of portable generators

Question

In conducting a market potential study for a manufacturer of portable generators, Miller Research Services of Minneapolis asked 829 owners of fifth-wheel and conventional travel trailers the following two questions: (1) Do you own or plan to buy a generator for your trailer? (2) What was the approximate cost of your trailer? The answers to the questions are summarized in the table.

One of the travel-trailer owners who does not currently own a generator is to be selected at random for further questioning. What is the probability that the person:
(a) will own a travel trailer worth $12,000 - $17,999?
(b) will own a travel trailer worth more than $17,999?
(c) will own a travel trailer worth $12,000 - $17,999 and be planning to buy a generator?
(d) will own a travel trailer worth $12,000 - $17,999 or be planning to buy a generator?

Do not own and Do not own, but plan to buy a generator Own do not plan to buy Cost of Trailer a generator Less than $6,000 $6,000 $11,999 52 $12,000 - $17,999 73 $18,000 - $23,999 29 $24,000 - $29,999 21 $30,000 or more a generator 65 78 36 18 10 160 175 62 21 6

Explanation / Answer

from above information:

a) P(will own a travel trailer worth $12,000 - $17,999)=

b) P( will own a travel trailer worth more than $17,999) =(29+21+3)/829 =53/829 =0.0639

c)

P(will own a travel trailer worth $12,000 - $17,999 and be planning to buy a generator)=

cost own not own but plan not own not plan Total <6000 1 5 14 20 6000-11999 52 65 160 277 12000-17999 73 78 175 326 18000-23999 29 36 62 127 24000-29999 21 18 21 60 >30000 3 10 6 19 Total 179 212 438 829

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