# You own a pottery business that sells beautiful kiln fired mugs. You have classified customers at your online pottery store

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## Question:

You own a pottery business that sells beautiful kiln fired mugs. You have classified customers at your online pottery store as either:

Loyalty program members (20% of all customers), regular shoppers (60% of all customers), or occasional shoppers (20% of all customers).

When you have a new batch of mugs for sale you've found that 70% of loyalty programme members will buy a mug, 30% of regular shoppers buy a mug and 10% of occasional shoppers buy a mug. Mugs are sold for $30 each but loyalty programme members get a discount of $5.

- What proportion of customers will purchase a mug?

Given that someone buys a mug what is the probability that they are a member of the loyalty program? Show your working.

What is the average revenue per customer for a new batch of mugs? (NB Remember to include customers who don't buy a mug in your calculations.)

**Related Book For**

## Modern Systems Analysis And Design

ISBN: 9780134204925

8th Edition

Authors: Joseph Valacich, Joey George

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**Question Details**

Chapter #

**9**Section: Cases

Problem: 1