Statistics Probability: 4 people are at a car showroom. They may purchase the car (denoted as P) or may not (denoted as N). What is the probability that (A) exactly 3 people will purchase a car, (B) 3 or fewer people will purchase a car, (C) 1 or more people will purchase a car, and (D) all four people make the same purchase decision?
What is the probability that they purchase the car? Is it equally probable that they do or do not buy it?
they are equally liekly to purchase the vehicle
Okay. Now, the events that someone buys the car is independent of whether or not other people buy the car. So for each person who buys a car, you multiply \(\large \frac{1}{2}\).
Also, the event that 2 people buy a car and the event that more or less than 2 people buy a car can not happen at the same time. They are mutual exclusive events. So to find the probability that either happen, you add them up.
So for example, the probability that less than 3 people buy the car is the probability that 1 person buys a car OR that 2 people buy a car. So we have \(\frac{1}{2} + \frac{1}{2} \cdot \frac{1}{2}\)
Are you following me so far?
One last thing to remember is that probability that an event DOESN'T happen is just one minus the probability that it does. So the probability that you don't have 3 people buy the vehicle is \(1 - \frac{1}{2} \cdot \frac{1}{2} \cdot \frac{1}{2}\).
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