Evaluate the probability that a reader of a magazine reads an ad and buys the advertised item A computer hardware company placed an ad for its new modem in a popular magazine. The company believes that the ad will be read by 32% of the magazine's readers, and that 2% of those who read the ad will buy the modem. With these assumptions, find the probability that a reader of the magazine will read the ad (event R) and buy the modem (event B).

P(R) = 32% = 0.32

P(B|R) = 2% = 0.02 (chance of buying modem, given they have read the ad)

The chance of both occurring together is, by the multiplication law of probability, P(R ∩ B) = P (R) * P (B|R) = 0.32 * 0.02 = 0.0064 = 0.64%