Statistical Techniques in Business and Economics, 16th Edition
Statistical Techniques in Business and Economics, 16th Edition
16th Edition
ISBN: 9780078020520
Author: Douglas A. Lind, William G Marchal, Samuel A. Wathen
Publisher: McGraw-Hill Education
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Chapter 5, Problem 8SR

Consumers were surveyed on the relative number of visits to a Sears store (often, occasional, and never) and if the store was located in an enclosed mall (yes and no). When variables are measured nominally, such as these data, the results are usually summarized in a contingency table.

Chapter 5, Problem 8SR, Consumers were surveyed on the relative number of visits to a Sears store (often, occasional, and

What is the probability of selecting a shopper who:

  1. (a) Visited a Sears store often?
  2. (b) Visited a Sears store in an enclosed mall?
  3. (c) Visited a Sears store in an enclosed mall or visited a Sears store often?
  4. (d) Visited a Sears store often, given that the shopper went to a Sears store in an enclosed mall?

In addition:

  1. (e) Are the number of visits and the enclosed mall variables independent?
  2. (f) What is the probability of selecting a shopper who visited a Sears store often and it was in an enclosed mall?
  3. (g) Draw a tree diagram and determine the various joint probabilities.

a.

Expert Solution
Check Mark
To determine

Obtain the probability of selecting a shopper who visits a Sears store often.

Answer to Problem 8SR

The probability of selecting a shopper who visits a Sears store often is 0.4103.

Explanation of Solution

Here, number of shopper who visited Sears often is 80. Total number of shoppers is 195.

The required probability is obtained as given below:

P(Shoppers visited often)=(Number of shoppers visited often)Total number of shoppers=80195=0.4103

Thus, the probability of selecting a shopper who visits a Sears store often is 0.4103.

b.

Expert Solution
Check Mark
To determine

Obtain the probability of selecting a shopper in an enclosed mall.

Answer to Problem 8SR

The probability of selecting a shopper in an enclosed mall is 0.4615.

Explanation of Solution

Here, number of shopper who visited an enclosed mall is 90.

The required probability is obtained as given below:

P(Shoppers visited enclosed mall)=(Number of shoppers visited enclosed mall)Total number of shoppers=90195=0.4615

Thus, the probability of selecting a shopper in an enclosed mall is 0.4615.

c.

Expert Solution
Check Mark
To determine

Obtain the probability of selecting a shopper in an enclosed mall or visited Sears store often.

Answer to Problem 8SR

The probability of selecting a shopper in an enclosed mall or visited Sears store often is 0.5641.

Explanation of Solution

Here, number of shopper who visited an enclosed mall and often is 60.

P(Visited in an enclosed mallor often)=P(Visited in anenclosed mall)+P(Visited often)P(Visited in an enclosed malland often)=90195+8019560195=110195=0.5641

Thus, the probability of selecting a shopper in an enclosed mall or visited Sears store often is 0.5641.

d.

Expert Solution
Check Mark
To determine

Obtain the probability of selecting a shopper who visited Sears store often given that shopper went to a Sears store in an enclosed mall.

Answer to Problem 8SR

The probability of selecting a shopper who visited Sears store often given that shopper went to a Sears store in an enclosed mall is 0.6667.

Explanation of Solution

The required probability is obtained as given below:

P(Visited often | Visitedin an enclosed mall)=P(Visited often and Visitedin an enclosed mall)P(Visited in an enclosed mall)=6019590195=6090=0.6667

Thus, the probability of selecting a shopper who visited Sears store often given that shopper went to a Sears store in an enclosed mall is 0.6667.

e.

Expert Solution
Check Mark
To determine

Check whether number of visits and the enclosed mall variables independent.

Answer to Problem 8SR

Number of visits and the enclosed mall variables are not independent.

Explanation of Solution

Two events A and B are independent if P(A|B)=P(A)

From part (d), P(Visited often | Visitedin an enclosed mall)=0.6667

From part (a), P(Shoppers visited often)=0.4103

Thus, P(A|B)P(A). Hence, number of visits and the enclosed mall variables are not independent.

f.

Expert Solution
Check Mark
To determine

Obtain the probability of selecting a shopper in an enclosed mall and visited Sears store often.

Answer to Problem 8SR

The probability of selecting a shopper in an enclosed mall and visited Sears store often is 0.3077.

Explanation of Solution

Here, number of shopper who visited an enclosed mall and often is 60.

P(Visited in an enclosed malland often)=(Number of shoppers visited enclosed mall and often)Total number of shoppers=60195=0.3077

Thus, the probability of selecting a shopper in an enclosed mall and visited Sears store often is 0.3077.

g.

Expert Solution
Check Mark
To determine

Construct a tree diagram that shows probabilities, conditional probabilities and joint probabilities.

Explanation of Solution

The first branch represents the shoppers visited enclosed mall which is divided into two categories. In the second branch, each category is subdivided into three different visits. The probabilities under the second branch represents conditional probabilities. The product of the probabilities in two branches represent joint probabilities.

The tree diagram is as given below:

Statistical Techniques in Business and Economics, 16th Edition, Chapter 5, Problem 8SR

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Chapter 5 Solutions

Statistical Techniques in Business and Economics, 16th Edition

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