Question

In: Statistics and Probability

A sporting goods company operates retail stores in the San Francisco and San Jose areas. Customers...

A sporting goods company operates retail stores in the San Francisco and San Jose areas. Customers were asked to rate their shopping experiences. Their results indicated that 15% rated their shopping experience as Poor, 45% as Average, and 40% as Good. In addition, 67% of the customers who rated their experience as Poor came from San Jose, 36% of the customers who rated their experience as Average came from San Jose, and 30% of the customers who rated their experience as Good came from San Jose.

(a) What is the probability that a customer came from San Jose?

(b) What is the probability that a customer who shopped in San Jose rated his or her experience as Good?

Solutions

Expert Solution

a) P(Customer came from San Jose)

= 0.15*0.67 + 0.45*0.36 + 0.40*0.30

= 0.3825

b) P(Rated Good | San Jose)

= P(Rated good and San Jose) / P(San Jose)

= (0.40*0.30) / 0.3825

= 0.3137


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