Question

4.11. According to a survey conducted by Netpop Research, 65% of new-car buyers use online search engines as part of their car-buying experience. Another study reported that 11% of new-car buyers skip the test drive. Suppose 7% of new-car buyers use online search engines as part of their car-buying experience and skip the test drive. If a new-car buyer is randomly selected a. What is the probability that the buyer used an online search engine as part of the car-buying experience or skipped the test drive

Answer 1

Prob (Online search or Skip test drive) = 0.69

Explanation:

Prob (Online search) = P(OS) = 65% = 0.65

Prob (Skip test drive) = P (STD) 11% = 0.11

Prob (Online search & Skip test drive) = P (OS ⋂ STD) = 7% = 0.07

Prob (Online search or Skip test drive) = P (OS U STD) :-

P(OS) + P (STD) - P (OS ⋂ STD)

= 0.65 + 0.11 - 0.07

= 0.69