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Are customers more loyal in the East or in the West? The following table is base

ID: 3340863 • Letter: A

Question

Are customers more loyal in the East or in the West? The following table is based on information from Trends in the United Sates, published by the food marketing Institute, Washington, D.C. The columns represent loyaltyin years) at a primary supermarket. The rows represent regions of the United States Le Than 1-2 34 591-1 15r M 32 54”11277 118 6 1201 929 18 106 452 523 3 73 What is the probability that s customer chosn at random has been loyal 5 or more years given that he or she is from the South? Round your answer to the nearest thousandth 0210 0.326 0.639 17

Explanation / Answer

The frequency total here is 2008, therefore the probability that the customer chosen at random has been loyal 5 or more years given that she is from south is computed as: ( Using bayes theorem )

= number of customers who are 5 years loyal or more and from south / Total customers who are from south

= (158 + 106 + 158 ) / 660

= 0.639

Therefore c) 0.639 is the required probability here.

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