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Events (X ∪ Y) and Z are complementary - they cover ALL possibilities with no overlap.

Think of it this way:
• A customer either buys at least one cigar from A or B → this is event (X ∪ Y)
• OR they buy neither A nor B → this is event Z
• There's no third option!

Therefore: P(X ∪ Y) + P(Z) = 1, which means P(X ∪ Y) = 1 - P(Z)

Statement 1: P(Z) = 0.35
Using our relationship:
P(X ∪ Y) = 1 - 0.35 = 0.65

We get one definite answer. SUFFICIENT

Statement 2: P(X) = 0.40 and P(Y) = 0.38
The formula for union is: P(X ∪ Y) = P(X) + P(Y) - P(X ∩ Y)

P(X ∪ Y) = 0.40 + 0.38 - P(X ∩ Y) = 0.78 - P(X ∩ Y)

Problem: We don't know P(X ∩ Y) - the probability that a customer buys BOTH brand A AND brand B.

Case 1: If no one buys both brands, P(X ∩ Y) = 0 → P(X ∪ Y) = 0.78
Case 2: If some customers buy both, say P(X ∩ Y) = 0.13 → P(X ∪ Y) = 0.65

Different values possible. NOT SUFFICIENT

Answer: A
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