A company that manufactures and sells consumer video cameras sells two versions of their popular hard-disk camera, a basic camera for $750, and a deluxe version for $1250. About 75% of customers select the basic camera. Of those, 60% purchase the extended warranty for an additional $200. Of the people who buy the deluxe version, 90% purchase the extended warranty. (a)  What is the percentage of customers who buy an extended warranty? (b)  If a customer purchases an extended warranty, what is the probability that he or she bought the deluxe version?

Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
Problem 26EQ
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A company that manufactures and sells consumer video cameras sells two versions of their
popular hard-disk camera, a basic camera for $750, and a deluxe version for $1250. About 75% of customers
select the basic camera. Of those, 60% purchase the extended warranty for an additional $200. Of the people
who buy the deluxe version, 90% purchase the extended warranty.
(a)  What is the percentage of customers who buy an extended warranty?
(b)  If a customer purchases an extended warranty, what is the probability that he or she bought
the deluxe version? 

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