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Question 12 of 20 10.0 Points In February 2002 the Argentine peso lost 70% of it

ID: 3225982 • Letter: Q

Question

Question 12 of 20

10.0 Points

In February 2002 the Argentine peso lost 70% of its value compared to the United States dollar. This devaluation drastically raised the price of imported products. According to a survey conducted by AC Nielsen in April 2002, 68% of the consumers in Argentina were buying fewer products than before the devaluation, 24% were buying the same number of products, and 8% were buying more products. Furthermore, in a trend toward purchasing less-expensive brands, 88% indicated that they had changed the brands they purchased. Suppose the following complete set of results were reported.  

Number of Products Purchased

Brands Purchased

Fewer

Same

More

Total

Same

10

14

24

48

Changed

262

82

8

352

Total

272

96

32

400


What is the probability that a consumer selected at random purchased fewer products than before?


What is the probability that a consumer selected at random purchased the same number or more products than before?

What is the probability that a consumer selected at random purchased fewer products than before and changed brands?

Given that a consumer changed the brands, what then is the probability that the consumer purchased fewer products than before?

Question 12 of 20

10.0 Points

In February 2002 the Argentine peso lost 70% of its value compared to the United States dollar. This devaluation drastically raised the price of imported products. According to a survey conducted by AC Nielsen in April 2002, 68% of the consumers in Argentina were buying fewer products than before the devaluation, 24% were buying the same number of products, and 8% were buying more products. Furthermore, in a trend toward purchasing less-expensive brands, 88% indicated that they had changed the brands they purchased. Suppose the following complete set of results were reported.  

Number of Products Purchased

Brands Purchased

Fewer

Same

More

Total

Same

10

14

24

48

Changed

262

82

8

352

Total

272

96

32

400


What is the probability that a consumer selected at random purchased fewer products than before?

Explanation / Answer

from the table we get-

total number of consumers is 400

out of which 272 consumers purchased fewer products than before.

hence the probability that a ranodmly selected consumer will purchase fewer products than before is 272/400=0.68 [answer]

96 consumers purchased same number of products and 32 consumers purchased more number of products.

so total number of consumers who purchased sme number or more products than before is 96+32=128

hence the probability that a consumer selected at random purchased the same number or more products than before is 128/400=0.32 [answer]

out of the 272 consumers who purchased fewer products , 262 of them changed brands and 10 stick to the same brand

so the probability that a consumer selected at random purchased fewer products than before and changed brands is 262/400=0.655 [answer]

there are 352 consumers who changed brands out of which 262 consumers purchased fewer brands

so P[consumer purchased fewer products than before | consumer changed brands]

=P[ consumer purchased fewer products and changed brands]/P[consumer changed brands]

=(262/400)/(352/400)=262/352=0.7443182 [answer]

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