Two customers enter a store. Independently, they make decisions to purchase or n

Question

Two customers enter a store. Independently, they make decisions to purchase or not to purchase. The following sketch shows how the events can occur and combine with red holding of sequence Customer 1 does not purchase and Customer 2 does not purchase The possible outcomes are shown on the right. If the event is the number of purchases, there are 3 events: 0 purchases, 1 purchase, and 2 purchases If each of the branches on the right of the figure are equally likely, the P(1 purchase) = Simple Multiplication Rule: P(A and B) = P(A) P(B) Simple Addition Rule: P(A or B) = P(A) + P(B) General Addition Rule: P(A or B) = P(A) + P(B) + P(B) - P(A and B) Assume the following probabilities. Simple Multiplication Rule: P(A and B) = P(A)*P(B) Simple Addition Rule: P(A or B) = P(A) + P(B) General Addition Rule: P(A or B) = P(A) + P(B) - P(A and B) Assume the following probabilities P(Customer makes purchase) = P(customer does not purchase) = Explain why P(Purchases = 0.1, or 2) = 1

Explanation / Answer

if they are equally likely , as there are 2 branches leading to 1 purchase"

hence probability=0.25+0.25=0.5

simple multiplication rule

as our probability space contains event of {0,1,2} purcahse whcih are mutually exclusive. therefore the sum of indivdual probability should be equal to 1.

please revert for any doubt

event purchase Probability 0 0.113 1 0.887*0.113=0.100231 2 0.887*0.887=0.786789 1

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