Data Analysis

Overview

Demonstrate that you know exactly what the question is asking (don't be vague!) and that you are comfortable with the terminology/ symbology such as P(A).

At a certain large company, the floor manager reviewing inventory and production. She ultimately comes to the decision that a product should be continued if it sold 150,000 times over the previous year. In addition, the product is considered "popular" if it receives at least 100 mentions by the local press over the past year. An analyst is hired to help with the analysis.

1. The analyst determines that the probability of sales exceeding 150,000 was 0.331, the probability of 100 or more mentions was 0.162, and the probability that a product both sold 150,000 items, and was also 'popular' is 0.064. What is the probability that a randomly selected product either sold the requisite 150,000 items, or that it is 'popular'? Again, phrase your answers in terms of probability variables (e.g. P(X) = ..., P(Y)=... etc.)
2. If we are told that an item has indeed reached the threshold of 100 mentions in the press, what is the probability of it selling 150,000 times?
3. Thought Question: Where would the analyst have come up with the values for the 0.331 and 0.064 probabilities? Use either the term "theoretical probability" or "empirical probability" in your answer. This was discussed early on in this course. You are also welcome to do a quick web search on your own if you don't feel like digging through your notes from way back when.