The Table Shows the Number of Each Ford Car Sold

question 107

Essay

The table shows the number of each Ford car sold in the United States in June. Suppose the sales record for one of these cars is randomly selected and the type of car is identified.
$$\begin{array} { | l | c | } \hline { \text { Type of Car } } & \text { Number } \\\hline \text { Sedan } & 7,204 \\\hline \text { Convertible } & 9,089 \\\hline \text { Wagon } & 20,418 \\\hline \text { SUV } & 13,691 \\\hline \text { Van } & 15,837 \\\hline \text { Hatchback } & 15,350 \\\hline \text { Total } & 81,589 \\\hline\end{array}$$ Events A and B are defined as follows.
A: {Convertible, SUV, Van}
B: {Fewer than 10,000 of the type of car were sold in June} a. Identify the sample points in the event $A \cup B$ .
b. Identify the sample points in the event $A \cap B$ .
c. Find $P ( A \cup B )$ .
d. Find $P ( A \cap B )$ .

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Definitions:

Substitution Effect

Substitution Effect occurs when consumers replace more expensive items with cheaper alternatives in response to changes in relative prices, holding their overall satisfaction constant.

Relative Prices

Relative prices express the price of one good or service in comparison to another, revealing their value relative to each other rather than in absolute monetary terms.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, in contrast to normal goods where demand increases with rising income.

Normal Good

A good for which demand increases as the income of the consumer increases, and vice versa, holding all other factors constant.