Please use the case in the box below to answer two following questions.
Lee's Lights sells lighting fixtures. Some customers are there only to browse, so Lee records the behavior of all customers for a week to assess how likely it is that a customer will make a purchase. Lee finds that of 1,000 customers entering the store during the week, 400 make purchase. Lee concludes that the probability of a customer making a purchase is 0.40.
Question 1
1 Point
If Lee assumes that customers behave independently, what is the probability that the next two customers entering Lee's Lights both make purchases?
A 24%
B 9%
C 35%
D 16%
E 15%