Purchase Solution

Statistical Probability Tree

Not what you're looking for?

Ask Custom Question

See the attached file.
Your firm is planning a new style of advertising and figures that the probability of increasing the number of customers is 0.63, while the probability of increasing sales given an increase in the number of customers is 0.651. Also assume that when there is no increase in the number of customers, there is no way that you'll be able to increase the sales.

a) draw a probability tree from this situation.
b) find the probability of increasing both sales and customers.
c) if sales increase, what is the probability that the number of customers increases?
d) if sales do not increase, what is the probability that the number of customers increases?
e) find the probability that neither customers not sales increase.

See attached file for full problem description.

Attachments
Purchase this Solution
Solution Summary

The solution gives the probability tree and demonstrates how to use it to answer the questions in the problem.

Solution Preview

Please see the attached file.

Increasing advertising
/
more customers no more customers
p = 0.63 p = 1 - 0.63 = 0.37
/ /
more sales no more sales more sales no more sales
p = 0.651 p = 1 - 0.651 = 0.349 p = 0 p = 1

0.41013 0.21987 0 0.37

a) The probability tree is above. I made it using the probabilities ...

Purchase this Solution
Free BrainMass Quizzes
Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

View More Free Quizzes
Related BrainMass Solutions

  • Kruskall Wallis Test

    ANALYSIS REQUIREMENT Whether is there any variation in the bark damage between the species of tree? I need to know what statistical tools can I use to embark on the data analysis and what techniques I should consider in the analysis?

  • Probability theory

    Since r is not equal to s, the person can not go back to the same tree. Thus the probability is 0. This solution the steps to determine the probability in the given word question.

  • Probability Tree & Joint Probability Table

    The solution develops a probability tree and develops a joint probability table.

  • Probability and Statistical Analysis

    The expert examines probability and statistical analysis. The probability of being hopelessly romantic is determined.

  • Mathematics - Probability - Tree Diagram

    278899 Probability and tree diagrams. The probability that Simon completes his homework is 7/8 and the probability that Hannah completes her homework is 3/4.

  • Probability Using Tree Diagrams

    If two boats arrived, what was the probability that both cargoes were ruined? Please use tree diagrams to find answer. Thanks. Probability Using Tree Diagrams Your questions are these: 1. A woman has two children.

  • Tree diagram to determine probability

    19700 Use a tree diagram to determine probability. Determine the probability that a child chosen at random from the school is bussed to school. Draw a tree diagram that illustrates the following.

  • Fault Tree Problem: Calculating probabilities.

    Assume there is a 20% chance of death if the car hits a barrier or tree and a 50% chance of death if hit by oncoming traffic. Calculate the probability of being killed per year in this type of accident Hint: This is a fault tree problem.

  • Probability Question

    If 4 used car salesmen say that a certain tree in the forest is oak, what is the probability that the tree is indeed oak. I have not been able to get the correct answer. Please see the attached file.

View More Related Solutions