Question

In: Statistics and Probability

Do you take the free samples offered in supermarkets? About 58% of all customers will take...

Do you take the free samples offered in supermarkets? About 58% of all customers will take free samples. Furthermore, of those who take the free samples, about 32% will buy what they have sampled. Suppose you set up a counter in a supermarket offering free samples of a new product. The day you were offering free samples, 309 customers passed by your counter. (Round your answers to four decimal places.)

(a) What is the probability that more than 180 will take your free sample?

(b) What is the probability that fewer than 200 will take your free sample?

(c) 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 that we are given the conditional probability P(buy|sample) = 0.32, while P(sample) = 0.58.

(d) What is the probability that between 60 and 80 customers will take the free sample and buy the product? Hint: Use the probability of success calculated in part (c).

Solutions

Expert Solution

We are given P( sample ) = 0.58 and n = 309

Let x be the number of customers take free samples , x follows binomial with n = 309 and p = 0.58 , q = 1-0.58 = 0.42

As n*p and n*q both are greater than 5, we have to use normal approximation.

So mean = n.*p = 309* 0.58 = 179.22 and standard deviation = = 8.676

We are asked to find P( x > 180 ) , we have to use continuity correction by adding 0.5 to 180

a)So we have to find P( x>180.5 ) using normal distribution

P( x > 180.5 ) =

P( z > 0.15) = 1 - P( z < 0.15 ) = 1 - 0.5596 ---- ( from z score table )

= 0.4404

b) We are asked to find P ( x < 200 ) so we have to use continuity correction by subtracting the 0.5 from 200

P( x < 199.5 ) =

=P( z < 2.34)

= 0.9903

c) We have P(buy|sample) = 0.32, while P(sample) = 0.58

We are asked to find P( buy and sample ) = P(buy|sample) * P(sample) = 0.32*0.58 = 0.1856

d) We have P( buy and sample ) = 0.1856

Let y be the number of customers will take the free sample and buy the product.

Y follows binomial with n = 309 and p = 0.1856

As n*p and n*q both are greater than 5, we have to use normal approximation.

So mean = n.*p = 309* 0.1856 = 57.3504 and standard deviation = = 6.8342

We are asked to find P(60<y<80) , we have to use continuity correction by adding 0.5 to 80 and subtracting 0.5 from 60

P( 59.5 < y < 80.5 ) = P( y < 80.5 ) - P( y <59.5 )

=

=P( z < 3.39) - P( z < 0.31)

= 0.9997 - 0.6217

= 0.3780


Related Solutions

Do you take the free samples offered in supermarkets? About 64% of all customers will take...
Do you take the free samples offered in supermarkets? About 64% of all customers will take free samples. Furthermore, of those who take free samples, about 37% will buy what they have sampled. Suppose you set up a counter in a supermarket offering free samples of a new product. The day you were offering free samples, 307 customers passed by your counter. a.) What is the probability that more than 180 will take your free sample? b.) What is the...
Which samples do you think are non-biased samples of the population of all students at a...
Which samples do you think are non-biased samples of the population of all students at a college/four‐year university? If it is a biased sample, is there a different population for which you believe the sample could be considered a non-biased sample? A random sample of 100 students from the registrar's student list A random sample of 100 students in the library on a Thursday night A random sample of 100 students in the student center on a Friday night A...
of all the students admitted to a college,58% take a workshop prior to taking the math...
of all the students admitted to a college,58% take a workshop prior to taking the math placement test. out of all the admitted students, 80% are placed out of the lower level remedial class,while of all students that take the workshop 90% are placed out of remedial class. what is the probability that a random selected newly admitted student will take the workshop and will be placed out of the lower remedial class?
Many businesses offer free samples of their products or services to potential customers to induce them...
Many businesses offer free samples of their products or services to potential customers to induce them to become customers. Write two or three paragraphs in which you describe how this strategy can be implemented online. Be sure to note how the amount of sampling that is likely to be beneficial differs in the online environment and the physical world.
What do you think about Free Hugs videoclip? Ok
What do you think about Free Hugs videoclip? Ok
A restaurant manager asks all of the customers this month to take an online survey (and...
A restaurant manager asks all of the customers this month to take an online survey (and get a free appetizer their next visit). It turns out that 241 customers actually take the survey, and of these 209 were ''extremely satisfied'' with their visit. Set up an approximate 95% confidence interval for the proportion of all the restaurant's customers that say they were ''extremely satisfied'' with their visit.. Select only one of the boxes below. A. The Normal curve cannot be...
If you were offered a position with a company which would allow you to take the...
If you were offered a position with a company which would allow you to take the position as either a W2 employee or an independent contractor as a 'consultant' explain which one you would choose under these circumstances and why: - The job pays $100,000 per year paid monthly. One month vacation for both 1099 & W2. Job stability is equal regardless of which option you choose. No other benefits beyond what is required by Federal Law. You are in...
(a) You wish to estimate the mean percentage price change for all supermarkets in the Foodmart...
(a) You wish to estimate the mean percentage price change for all supermarkets in the Foodmart chain. From the sample of 150 stores, we have calculated the sample mean, x = 4.092 and sample standard deviation, s = 0.795. (i) Calculate the 99% confidence interval estimate of the mean percentage change for all supermarkets in the Foodmart chain. (ii) Provide a plain language interpretation of the interval you have just constructed. (iii) Nationally, the Food component of the Australian CPI...
How do you feel about Free speech? Do you think hate speech should be protected under...
How do you feel about Free speech? Do you think hate speech should be protected under Free Speech?
What are the benefits of international free trade? Do all parties gain if there is free...
What are the benefits of international free trade? Do all parties gain if there is free trade between countries? Use the trade between the US and Mexico to explain your answer.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT