You are the marketing director for a museum that raises money by selling gift items from a mail-order catalog. For each catalog sent to a potential customer, the customer’s entry in the data file is Y if they ordered something and N if they did not (Y = yes, N = no). After you have mailed the fall and the winter catalogs, you estimate the probabilities of the buying patterns based on those who received the catalog as follows:
a. Display the outcomes and their probabilities in a contingency table, using the rows for the (Y, N) outcomes for the fall catalog and the columns for the (Y, N) outcomes for the winter catalog.
b. Let F denote buying from the fall catalog and W denote buying from the winter catalog. Find P(F) and P(W).
c. Explain what the event “F and W” means, and find P(F and W).
d. Are F and W independent events? Explain why you would not normally expect customer choices to be independent.

  • CreatedSeptember 11, 2015
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