Consumer Surveys Indicate That 40% of Newspaper Readers Read Automobile

Essay

Consumer surveys indicate that 40% of newspaper readers read automobile ads and 5% of those who read the ads actually purchase automobiles. On the other hand, 50% of magazine readers read automobile ads but only 3% of those who read the ads actually buy a car. Among those who do not read either newspaper or magazine auto ads, 1% buys cars anyway. Sixty percent of the population reads newspapers, while 20 percent primarily read magazines. Compute the overall percentage of the population that purchases automobiles in a given year. (To aid your analysis, you might wish to draw a decision tree listing appropriate probabilities for the three aforementioned reading segments.)