Question

A dry cleaning business offers a pick-up and delivery service for a 10 percent surcharge. Management believes 60 percent of the existing customers will take advantage of this service. They are also considering offering customers the option of opening an account and receiving monthly bills. They believe 60 percent of customers (regardless of whether or not they use the pick-up service) will use the account service. If the two services are introduced to the market, what is the probability a customer uses neither of these services

Answer 1

The probability that the consumer would use both the services is 0.36.

Explanation:

Probability is a numerical portrayal of how likely an occasion is to happen or how likely it is that a suggestion is valid. Likelihood is a number somewhere in the range of 0 and 1, where, generally, 0 demonstrates inconceivability and 1 shows assurance.

Since the probability of using the account service is 0.6, if two services are introduced in the market, then the probability would use neither of the services would be 0.6 into 0.6 which is 0.36.