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Question: An airline has noticed that 40% of its customers who buy tickets don't take advantage of advance-purchase fares and the remaining 60% do. The no-show rate for those who don't have advance-purchase fares is 30%, while for those who do have them, it is only 5%.
a. Create a tree diagram for this situation.
b. Create a "hypothetical hundred thousand" table for this situation.
c. Using the tree diagram from part (a) or the table from part (b), find the percent of customers who are no-shows.
d. Given that a customer is a no-show, what is the probability that he or she had an advance-purchase fare?
e. Refer to the answer you found in part (d). Write a sentence presenting this result that someone with no training in statistics would understand.
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