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Question

A salesman has a 70% chance to sell a product to any customer. The behaviour of successive customers is independent. If two customers A and B enter, what is the probability that the salesman will sell the product to customer A or B?

A
0.98
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B
0.91
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C
0.70
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D
0.49
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Solution

The correct option is B 0.91
Let P(A) and P(B) be the probability that salesman sells the product to costumer A and B respectively
P(A)=P(B)=70%=0.7

Probability that the salesman will sell the product to customer A or B=P(A¯¯¯¯B)+P(¯¯¯¯BA)+P(AB)
=P(A)P(¯¯¯¯B)+P(¯¯¯¯A)P(B)+P(A)(B) ...( P(A) and P(B) are independent)
=(0.7)(10.7)+(10.7)(0.7)+(0.7)(0.7)
=0.21+0.21+0.49
=0.91
Answer is option (B).

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