Travel and Transportation
A family trying to arrange a vacation is using the Internet to name their own price for a rental car. The software reports that 50% of all people name a price of $30 per day, 40% bid $25 per day, and 10% bid $20 per day. The Internet company also reports that 90% of all $30 bids are accepted, 60% of all $25 bids are accepted, and only 5% of all $20 bids are accepted.
a. What is the probability that the family will submit a bid of $25 and have it accepted?
b. What is the probability that their bid will be accepted?
c. Suppose their bid is accepted. What is the probability that it is for $20?