Question

Are customers more loyal in the East or in the West? The following table is based...

Are customers more loyal in the East or in the West? The following table is based on information from a recent study. The columns represent length of customer loyalty (in years) at a primary supermarket. The rows represent regions of the United States.

Less Than 1 Year 1-2 Years 3-4 Years 5-9 Years 10-14 Years 15 or More Years Row Total
East 32 31 59 112 77 148 459
Midwest 31 71 68 120 63 177 530
South 53 69 93 158 106 161 640
West 41 75 67 78 45 76 382
Column Total 157 246 287 468 291 562 2011

What is the probability that a customer chosen at random has the following characteristics? (Enter your answers as fractions.)

(a) has been loyal 10 to 14 years


(b) has been loyal 10 to 14 years, given that he or she is from the East


(c) has been loyal at least 10 years


(d) has been loyal at least 10 years, given that he or she is from the West


(e) is from the West, given that he or she has been loyal less than 1 year


(f) is from the South, given that he or she has been loyal less than 1 year


(g) has been loyal 1 or more years, given that he or she is from the East


(h) has been loyal 1 or more years, given that he or she is from the West


(i) Are the events from the East and loyal 15 or more years independent? Explain.

No. P(loyal 15 or more years) ≠ P(loyal 15 or more years | East).Yes. These events can occur together.    No. These events cannot occur together.Yes. P(loyal 15 or more years) = P(loyal 15 or more years | East).

Homework Answers

Answer #1

a) P(has been loyal 10 - 14 years) = 291/2011 = 0.1447

b) P(10 - 14 year | East) = 77/459 = 0.1678

c) P(loyal at least 10 years) = (77 + 148)/2011 = 225/2011 = 0.1119

d) P(loyal at least 10 years | west) = (45 + 76)/382 = 121/382 = 0.3168

e) P(West | less than 1 year) = 41/157 = 0.2611

f) P(south | less than 1 year) = 53/157 = 0.3378

g) P(loyal 1 or more years | East) = (459 - 32)/459 = 0.9303

h) P(loyal 1 or more years | west) = (382 - 41)/382 = 0.8927

i) P(loyal 15 or more years) = 562/2011 = 0.2795

P(royal 15 or more years | East ) = 148/459 = 0.3224

Since P(loyal 15 or more years) P(royal 15 or more years | East ) so these events are not independent.

No, P(loyal 15 or more years) P(royal 15 or more years | East ). These events can occur together.

  

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