A market research firm has determined that a certain community is composed of 15

Question

A market research firm has determined that a certain community is composed of 15% low-60% medium, and 25% upper-income families. The firm has also determined that 80% of the low-income families regularly shop at a particular discount store located in the community. The percentages for the medium-and high-income families are 60 and 5. respectively. A shopper at the store who resides in the community is picked at random. What is the probability that he/she belongs to a. a. Low-income family? b. Medium-income family? c. High-income family?

Explanation / Answer

probabilty that a person shops at store resides in the community =0.15*0.8+0.6*0.6+0.25*0.05=0.4925

a) probabilty from low income family given  shops at store resides in the community =0.15*0.8/0.4925=0.2437

b)probabilty from medium income family given  shops at store resides in the community =0.6*0.6/0.4925=0.7310

c)probabilty from high income family given  shops at store resides in the community =0.25*0.05/0.4925=0.0254

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