Question

A company that manufactures and sells consumer video cameras sells two versions of their popular hard disk​ camera, a basic camera for ​$950, and a deluxe version for ​$1200. About 55​% of customers select the basic camera. Of​ those, 70% purchase the extended warranty for an additional ​$150. Of the people who buy the deluxe​ version, 90% purchase the extended warranty. Complete parts a through d below.

Sketch the probability tree for total purchases.

			Warranty	.70		Basic and Warranty
Basic	.55
			No Warranty	.30		Basic and No Warranty
			Warranty	.90		Deluxe and Warranty
Deluxe	.55
			No Warranty	.10		Deluxe and No Warranty
	​(Type integers or​ decimals.)

Answer 1

Tree diagram:

					Total
		Warranty	0.7		0.385
Basic	0.55
		No Warranty	0.3		0.165
		Warranty	0.9		0.405
Deluxe	0.45
		No Warranty	0.1		0.045

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