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Your marketing department has surveyed potential customers and found that, (1) 27% read the trade publication Industrial Chemistry, (2) 18% have bought your products, and (3) of those who read Industrial Chemistry, 63% have never bought your products.
a. Draw a probability tree for this situation.
b. What percentage of the potential customers neither read Industrial Chemistry nor has bought your products? (This group represents future expansion potential for your business.)
c. Find the conditional probability of reading Industrial Chemistry given that they have bought your products. (This indicates the presence of the publication among your current customers.)
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