Mark a real estate agent estimates that of prospective homeb

Mark, a real estate agent, estimates that of prospective homebuyers who see an ad for a house he has listed for sale, 22% will show up for the open house. Of those who show up for the open house, 30% will return for a second showing, and of these, 75% will make an offer to buy the house. What is the probability that a prospective homebuyer who has seen Mark\'s ad will show up for a second viewing and ultimately make an offer to buy the house?

Solution

Sol)

Let A be the event that show up for the open house P(A)=0.22

Let B be the event that will return for a second showing P(B)=0.30

Let C be the event that will make an offer to buy the house P(C)=0.75

Now probability that a prospective homebuyer who has seen Mark\'s ad will show up for a second viewing and ultimately make an offer to buy the house is

=P(A)*P(B)*P(C)

=0.22 * 0.30 *0.75

=0.0495