Probability I: Introductory Ideas

In a staff meeting called to address the problem of returned checks at the supermarket where you are interning as a fi nancial analyst, the bank reports that 12 percent of all checks are returned for insuffi cient funds, and of those, in 50 percent of cases, there was cash given back to the customer. Overall, 10 percent of customers ask for cash back at the end of their transaction with the store. For 1,000 customer visits, how many transactions will involve: (a) Insuffi cient funds? (b) Cash back to the customer? (c) Both insuffi cient funds and cash back? (d) Either insuffi cient funds or cash back?

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