Fill ’er up! In a certain month, 88% of automobile drivers filled their vehicles with regular gasoline, 2% purchased midgrade gas, and 10% bought premium gas. 19 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. a. Draw a tree diagram to model this chance process.

b. Find the probability that the customer paid with a credit card.

c. Suppose the chosen customer paid with a credit card. What’s the probability that the customer bought premium gas?

Short Answer

Expert verified

Part a)Drawn

Part b)Probability that the customer paid with a credit card is0.2952.

Part c)

Step by step solution

01

Part (a) Step 1:Given information

2%bought midgrade gas.

10%bought premium gas.

Customers paid with Credit card:

28% bought regular gasoline.

34%bought midgrade gas.

42% bought premium gas.

02

Part (a) Step 2:Calculation

The first level is:

There are three types of gasoline in the first level:

Regular, midgrade, and premium are the three levels of quality.

As a result, the first level necessitates three children:

Regular, midgrade, and premium are the three levels of quality.

Second tier:

There are two sorts of payment mechanisms at this level:

Using a credit card or not using a credit card (other payment method)

As a result, the second level has two children each child in the first level, i.e., Credit Card and No Credit Card.

The necessary tree diagram can be drawn as follows:

03

Part (b)Step 1:Given information

Fuel purchased by automobile drivers:

88% bought regular gasoline.

2% bought midgrade gas.

10% bought premium gas.

Customers paid with Credit card:

28% bought regular gasoline.

34% bought midgrade gas.

42% bought premium gas.

04

Part (b) Step 2: Calculatiom

Let

R: Regular gasoline

M: Midgrade gas

P: Premium gas

C: Credit card

N: No Credit card

Now,

The corresponding probabilities:

Probability for the customer purchased regular gasoline,

P(R)=0.88

Probability for the customer purchased midgrade gas,

P(M)=0.02

Probability for the customer purchased premium gas,

P(P)=0.10

Probability for the customer purchased regular gasoline paid with Credit card,

P(CR)=0.28

Probability for the customer purchased midgrade gas paid with Credit card,

P(CM)=0.34

Probability for the customer purchased premium gas paid with Credit card,

P(CP)=0.42

Apply general multiplication rule:

Probability for the customer paid with Credit card and purchased regular gasoline,

P(CandR)=P(R)×P(CR)=0.88×0.28=0.2464

Probability for the customer paid with Credit card and purchased midgrade gas,

P(CandM)=P(M)×P(CM)=0.02×0.34=0.0068

Probability for the customer paid with Credit card and purchased premium gas,

P(CandP)=P(P)×P(CP)=0.10×0.42=0.0420

Since the vehicles cannot be filled up with two types of gas at same time.

Apply the addition rule for mutually exclusive events:

P(C)=P(CandR)+P(CandM)+P(CandP)

=0.2464+0.0068+0.0420

=0.2952

Thus,ProbabilityforcustomerpaidwithaCreditcardis0.2952.

05

Part (c) Step 1:Given information

Fuel purchased by automobile drivers:

88%bought regular gasoline.

2% bought midgrade gas

10% bought premium gas

Customers paid with Credit card:

28%bought regular gasoline.

34% bought midgrade gas

42% bought premium gas

06

Part (c) Step 2:Calculation

From Part (b),

We have

Probability for the customer paid with a credit card,

P(C)=0.2952

Probability for the customer paid with credit card and purchased premium gas,

P(CandP)=0.0420

Apply the conditional probability:

P(PC)=P(CandP)P(C)=0.04200.2952=352460.1423

Thus,

The probability for customer paid with credit card purchased premium gas is approx. 0.1423.

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