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 $1450. About 35% of customers select the basic camera. Of those, 20% purchase the extended warranty for an additional $200. Of the people who buy the deluxe version, 40% purchase the extended warranty. What is the percentage of customers who buy an extened warranty?
Accepted Solution
A:
Answer:The percentage of customers who buy an extended warranty is 33%.Step-by-step explanation:In this problem, we have these following percentages.35% of the customers select the basic camera. This also means that:65% of the customers select the deluxe version. (Since you can buy only two versions of the hard disk camera and the sum of the percentages is 100%).20% of those who select the basic camera also purchase the extended warranty.40% of those who select the deluxe version also purchase the extended warranty.What is the percentage of customers who buy an extened warranty?[tex]P = P_{1} + P_{2}[/tex][tex]P_{1}[/tex] is the percentage of those who buy the basic version with the extended warranty. So it is 20% of 35%. So[tex]P_{1} = 0.20*0.35 = 0.07[/tex][tex]P_{2}[/tex] is the percentage of those who buy the deluxe version with the extended warranty. So it is 40% of 65%. So[tex]P_{2} = 0.40*0.65 = 0.26[/tex][tex]P = P_{1} + P_{2} = 0.07 + 0.26 = 0.33[/tex]The percentage of customers who buy an extended warranty is 33%.