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 Market research for an online electronics retailer showed that 23% of its customers purchased a smart phone. 12% of these smartphone customers used an online payment system (such as Paypal) to pay for their purchases, i.e., given that a customer purchased a smart phone, the probability was 12% that he/she used an online payment system to pay.  In general, 8% of the customers used an online payment system to pay for their purchases. (10 Points)

   

a. What percent of customers did not purchase a smart phone?
100 - 23 = 77   Therefore, 77% of customers did not purchase a smart phone.
    b. What percent of customers purchased a smart phone and used an online payment system to pay?
12% . It states this information above in the question.
    c.  What percent of customers purchased a smart phone or used an online payment system to pay?
    d. Are the events “purchased a smart phone” and “used an online payment system to pay” mutually exclusive? Why or why not.
    e. Are the events “purchased a smart phone” and “used an online payment system to pay” independent? Use probabilities to justify your answer.

 

I have answered the first two questions - which I believe my answers to be correct. I am struggling with the other 3. Any help would be greatly appreciated, with calculations - Thanks.

 Jan 19, 2016
 #1
avatar+129850 
0

I believe that (b)  should be this......

 

23% of the customers purchased a smartphone....of these, 12%  paid online......so

 

The  %   of total customers that purchased a smartphone AND paid online  =

 

12% of 23% =  .12 * .23 = about 2.76%   of the total customers

 

(c)  Let A be the probability that a customer purchased a smartphone = .23

      Let B be the probability  that a customer paid on line = ..08

      Let P(A and B)  = .0276

 

So

 

P( A or B)  = P(A) + P(B)  - P(A and B)  =

 

                      .23    + .08  -  .0276  =

 

                      .2824     =  

 

about 28.24%  of the total  customers purchased a smartphone or paid online

 

(d)  The events buying a smartphone  and paying online aren't mutually exclusive, brcause we could have purchased a smartphone and paid online

 

(e)  If   P(A and B)  = P(A)  * P(B)   .....then the events are independent

 

So

 

P(A and B)  = .0276

P(A)  = .23

P(B)  = .08

 

But

 

.0276  =  .23 * .08    ???

 

.0276  = .0184

 

So.....these events are not independent

 

 

 

cool cool cool

 Jan 19, 2016
 #2
avatar+598 
+5

Thanks for all your help Phil. I have posted one more in the forum if you want to give it a shot. It will also be my final one.

 

Thanks again

 Jan 19, 2016

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