Question

A rental car company offers two options when a car is rented. A renter can choose to pre-purchase gas or not and can also choose to rent a GPS device or not. Suppose that the events

A = event that gas is pre-purchased
B = event that a GPS is rented

are independent with P(A) = 0.35 and P(B) = 0.50.

Select a "hypothetical 1000" table with columns corresponding to whether or not gas is pre-purchased and rows corresponding to whether or not a GPS is rented.

Answer 1

To create a 1000 table with columns corresponding to pre-purchased gas and rows corresponding to rented GPS devices, we need to consider the probabilities of each combination.

Step-by-step explanation:

To create a 1000 table with columns corresponding to pre-purchased gas and rows corresponding to rented GPS devices, we need to consider the probabilities of each combination.

Let's label the columns as Gas (G) and No Gas (NG), and the rows as GPS (P) and No GPS (NP).

We have the following probabilities: P(A) = 0.35 and P(B) = 0.5.

The table will look like this:

GNGP0.35 * 0.5 = 0.1750.35 * (1 - 0.5) = 0.175NP(1 - 0.35) * 0.5 = 0.325(1 - 0.35) * (1 - 0.5) = 0.325