Lily Frequents One of Two Fast Food Restaurants, Choosing McDonald

question 20

Essay

Lily frequents one of two fast food restaurants, choosing McDonald 25% of the time and Burger King 75% of the time. Regardless of where she goes, she buys French Fries on 60% of her visits.
a. The next time Lily goes into a fast food restaurant, what is the probability that she goes to McDonald and orders a French Fries?
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b. Are the two events in the previous question independent? Explain.
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c. Explain.
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d. If Lily goes to a fast food restaurant and orders French Fries, what is the probability that she is at Burger King?
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e. What is the probability that Lily goes to McDonald, or orders French Fries, or both?
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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a product changes in response to a change in the product's price.

Demand

The consumer's desire to purchase goods and services and willingness to pay a price for a specific good or service.

Price Elastic

Describes a situation where the quantity demanded or supplied of a good or service changes significantly due to changes in its price. Highly elastic means a small price change makes a big difference in demand or supply.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a particular price.