Question

MY NOTES ASK YOUR TEACHER Jack has decided to advertise the sale of his car by placing flyers in the student union and the dining hall of the college. He estimates that there is a probability of 0.4 that a potential buyer will read the advertisement and that, if it is read, the probability that the reader will buy his car will be 0.1. Using these estimates, find the probability that a potential buyer will read the ad and will buy Jack's car.

Answer 1

Answer:

The probability that a potential buyer will read the advert and will buy Jack's car is 0.04

Step-by-step explanation:

Estimate 1:  There's a 0.4 probability that a potential buyer will read the advert.

Estimate 2:  There's a 0.1 probability that whoever reads the advert will buy his car.

- As you can see, the probability of success of this event decreases; from the point of Jack placing an advert, to the point of someone purchasing his car.

- That someone reads the advert does not mean that he or she would be interested in or capable of purchasing the car.

- That someone has the capacity to buy the car (potential buyer) does not mean they'll eventually buy it.

- So altogether, there is a low probability of each reader purchasing the car, and that's 0.1

In the calculation of probability, "and" represents multiplication. Hence,

0.4 × 0.1  = 0.04