Summit Projects provides marketing services and website management for many companies that specialize in outdoor products and services ( To understand customer Web behavior, the company experiments with different offers and website design. The results of such experiments can help to maximize the probability that customers purchase products during a visit to a website. Possible actions by the website include offering the customer an instant discount, offering the customer free shipping, or doing nothing. A recent experiment found that customers make purchases 6% of the time when offered the instant discount, 5% when offered free shipping and 2% when no special offer was given. Suppose 20% of the customers are offered the discount and an additional 30% are offered free shipping.
a) Construct a probability tree for this experiment.
b) What percent of customers who visit the site made a purchase?
c) Given that a customer made a purchase, what is the probability that they were offered free shipping?

  • CreatedMay 14, 2015
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