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1. Assume that 71% of all customers will take free samples. Furthermore, of thos

ID: 3269257 • Letter: 1

Question

1.Assume that 71% of all customers will take free samples. Furthermore, of those who take the free samples, assume that about 32% will buy what they have sampled. Suppose that you set up a counter in a supermarket offering free samples of a new product and that the day you were offering free samples, 433 customers passed by your counter. What is the probability that a customer will take a free sample and buy the product? [Hint: Use the multiplication rule for dependent events. Notice we are given the conditional probability P(buy, given sample) = 0.32, while P(sample) = 0.71.]

1.Assume that 71% of all customers will take free samples. Furthermore, of those who take the free samples, assume that about 32% will buy what they have sampled. Suppose that you set up a counter in a supermarket offering free samples of a new product and that the day you were offering free samples, 433 customers passed by your counter. What is the probability that a customer will take a free sample and buy the product? [Hint: Use the multiplication rule for dependent events. Notice we are given the conditional probability P(buy, given sample) = 0.32, while P(sample) = 0.71.]

Explanation / Answer

Given P(Buy / Sample) = 0.32 and P(Sample) = 0.71

The probability that a customer will take a free sample and buy the product is

P(Buy and Sample) = P(Buy / Sample) * P(Sample)

= 0.32 *0.71 = 0.2272