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A sales trainee is told by his manage that only 25% of those who come into the s

ID: 2958907 • Letter: A

Question

A sales trainee is told by his manage that only 25% of those who come into the store actually make a purchase. the trainee fins during his first few months on the job that on-third of those person who actually made a purchase had a charge account with store while only ten percent of those who did not make a purchase had an account. if a person entering the store has a charge card, what is the probability that this person will make a purchase? Find (A|C) where A= person makes a purchase, B = Person does not make purchase, C= person has a charge account

Explanation / Answer

Let's make one more letter notation to make writing easier. D = person does not have a charge account

from given info, ratio of A to B is 1:3

ratio of C to D is 1:2 for A

ration of Cto D is 1:9 for B

Based on above, i picked "good" numbers for following table that satisfy the above ratio to avoid fraction

               C             D      total

A             10           20       30

B              9             81       90

total         19           101     120

so P(A|C) = 10 /(10+9) = 10/19

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