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Thu 14 Apr, 2016 08:28 am
The owner of a small travel business classifies telephone calls into those from existing clients or those from potential new clients. Eighty percent (80%) of all calls received are from potential new clients. Of the calls from existing clients, 60% result in a travel sale, while only 20% of calls from potential new clients result in a travel sale. A computer database is used to store information about each call. (HINT: Construct a contingency table).
Question 1
What is the probability that a randomly selected call (from the database) is “from a potential new client AND results in a travel sale”?
(a) 0.20
(b) 0.16
(c) 0.92
(d) 0.80 (e) 0.224
Question 2
What is the probability that a randomly selected call is “from an existing client OR does not result in a travel sale”?
(a) 0.40
(b) 0.92
(c) 0.88
(d) 0.08
(e) 0.84
Question 3
Given that a travel sale is made from the chosen call, what is the probability that it was initiated by a potential new client?
(a) 0.889
(b) 0.800
(c) 0.571
(d) 0.200
(e) 0.160