Hi, I have been stuck with this example for quite a while now. The question is as follows:
A customer entering a bicycle store will buy a new bike with a probability of 10% and will buy bicycle accessories with a probability of 65%. With a probability of 30% a customer will not purchase anything.
(a) Find the probability that a customer will buy both a new bike and bicycle accessories.
and (b) Find the probability that a customer will only buy a bike.
I have done similar questions before however with this question I don't quite understand what to do with.
For part (a) I did the following:
A = buy a bike. P(A) = 0.1
B = buy bike accessories. P(B) = 0.65
Then I tried to use the formula:
P(A u B) = P(A) + P(B) - P(A n B) but I don't know how I would find P(A n B).
In the end I got a value of 0.685 but don't think its correct.
Thanks
Oh maybe I was interpreting it in a different way, as I was thinking that the B itself has a probability of 0.65.
It's been a while since I've done stats, and the way I was reading it, I thought you would n't use the P(B|A) formula.
I've used that now and got the value for P(B n A) as 0.065
Is it correct?
edit: I've also put the actual wording of the question up now.