2026 EJC P2 Q8

A meal delivery company, FoodforEu, offers two subscription plans, Basic Plan and Premium Plan, with a 3-day free trial for both plans. Over time, it was found that 76% on the Basic Plan continued their subscription after their trial, while 89% of customers on the Premium Plan continued their subscription after trial.

In a particular month, 65% of new customers signed up for the Basic Plan 3-day free trial while the rest signed up for the Premium Plan 3-day free trial.

1. Find the probability that
   1. a randomly chosen new customer in that month continued his or her subscription after the 3-day free trial,[2]
   2. a randomly chosen new customer in that month chose the Premium Plan given that he or she continued the subscription after the 3-day free trial,[2]
   3. out of 5 randomly chosen new customers in that month who continued their subscription plans, at least one of them signed up for the Premium Plan.[3]
2. Explain why the probability in part (a)(ii) is less than 0.5, even though customers on the Premium Plan are more likely to continue their subscription than those on the Basic Plan.[1]