Question: As input into his pricing policy, the owner of an appliance store is interested in the relationship between the price at which an item is sold (regular or sale price) and the customer’s decision on whether or not to purchase an extended warranty. The owner has constructed the accompanying table of probabilities based on a study of 2000 invoices. Suppose one sales invoice is selected at random, with the relevant events being defined as follows:

A: Item is purchased at regular price

B: Item is purchased at sale price

C: Extended warranty is purchased

D: Extended warranty is not purchased

Express each of the following (a through f) in words, and find its value.

a) P(A)

b) P(C)

c) P(C|A)

d) P(D|B)

e) P(A U B)

f) P(A ∩ D)

g) Are price and warranty independent of each other? Why or why not?