Fill ’err up! In a recent month, 88%of automobile drivers filled their vehicles with regular gasoline, 2%purchased midgrade gas, and 10%bought premium gas.17 Of those who bought regular gas, 28% paid with a credit card; of customers who bought midgrade and premium gas, 34% and 42%, respectively, paid with a credit card. Suppose we select a customer at random.

Draw a tree diagram to represent this situation. What’s the probability that the customer paid with a credit card? Use the four-step process to guide your work.

Short Answer

Expert verified

The probability that the customer paid with a credit card is 0.2952%

Step by step solution

01

Step 1. Given Information

Regular gasoline was utilized by 88percent of the vehicles, with midgrade gas purchased by2% and premium gas purchased by 10% Regular gas is bought with a credit card 28% of the time, midgrade gas is bought with a credit card 34% of the time, and premium gas is bought with a credit card 42%of the time.

02

Step 2. Concept Used

Conditional probability: P(AB)=P(A/B)×P(B)

03

Step 3. Calculation

The tree diagram is shown below, according to the question:

Now, for each type of gasoline, determine the likelihood of paying using a credit card.

P(RegularCreditcard)=P(Creditcard/Regular)×P(Regular)=88%×28%=0.88×0.28=0.2464

P(MidgradeCreditcard)=P(Creditcard/Midgrade)×P(Midgrade)=2%×34%=0.02×0.34=0.0068

P(PremiumCreditcard)=P(Creditcard/Premium)×P(Premium)=10%×42%=0.10×0.42=0.042

Fill in the blanks with the corresponding probabilities:

P(creditcard)=0.2464+0.0068+0.042=0.2952%

As a result, the likelihood of the buyer paying using a credit card is 0.2952%

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