A Survey of Local Car Dealers Revealed That 64% of All

question 30

Essay

A survey of local car dealers revealed that 64% of all cars sold last month had CD players,
28% had alarm systems, and 22% had both CD players and alarm systems.
a. What is the probability one of these cars selected at random had neither a CD player nor
an alarm system?
b. What is the probability that a car had a CD player unprotected by an alarm system?
c. What is the probability a car with an alarm system had a CD player?
d. Are having a CD player and an alarm system disjoint events? Explain.

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Definitions:

Nominal Rate

Refers to the interest rate before adjustments for inflation or other factors.

Effective Rate

The actual interest rate that borrowers pay or investors receive on a financial product, once all the compounding periods are factored in, often higher than the nominal rate.

Compounding Interval

The frequency at which interest is applied to the principal sum of a loan or deposit, affecting the total interest earned or paid.

Compounded Nominal Rate

The rate of interest quoted for a period, usually a year, without taking into account the effect of compounding within that period.