The option to buy extended warranties is commonplace

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The option to buy extended warranties is commonplace with most electronics purchases.But does the type of purchase affect a consumer's willingness to pay extra for an extendedwarranty? Data for 420 consumers who purchased big screen TVs and laptop computersfrom a leading electronics retailer are summarized in the table.Purchased Warranty? Yes No TotalBig Screen TV 30 42 72Laptop Computer 145 203 348 Total 175 245 420a. What is the probability that a consumer purchases an extended warranty?b. What is the probability that a consumer purchases a big screen TV and an extendedwarranty?c. What is the probability that a consumer purchases an extended warranty given thathe/she has purchased a big screen TV?8) Does it appear that the decision to purchase an extended warranty and type of electronics (bigscreen TV or laptop computer) purchased are independent? Explain

Reference no: EM13721203

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