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A salesman has a 60% chance of making a sale to each customer. The behaviour of successive customers is independent. If two customers A and B enter. The probability that the salesman will make a sale to A or B is

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0.84

0.96

0.36

0.74

answer is B.

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Detailed Solution

P(Success) $= \frac{60}{100}$ , P(FAILURE) $= \frac{40}{100}$

P(Sale to Success A or B)

$= 1 - P$ (Sale to Failure A or B)

$= 1 - \frac{40}{100} \times \frac{40}{100} = 1 - 0.16 = 0.84$

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