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The overnight shipping business has skyrocketed in the last ten years. The singl

ID: 3209021 • Letter: T

Question

The overnight shipping business has skyrocketed in the last ten years. The single greatest predictor of a company's success has been proven time and again to be customer service. A study was conducted to study the customer satisfaction levels for one overnight shipping business. In addition to the customer's satisfaction level, the customers were asked how often they used overnight shipping. The results are shown below in the following table.

Frequency of Use High Medium Low Total

< 2 per month 250 140 10 400
2 - 5 per month 140 55 5 200
> 5 per month 70 25 5 100
TOTAL 460 220 20 700

Suppose that one customer who participated in the study is chosen at random. What is the probability that the customer had a high level of satisfaction and used the company more than five times per month? The answer is 1/10. Please explain how to get the answer.

Explanation / Answer

Assume that one customer who participated in the study is chosen at random.

probability that the customer had a high level of satisfaction and used the company more than five times per month
=70/700

=1/10

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