Question

Of the last 500 customers entering a supermarket, 50 have purchased a wireless phone. If the relative frequency approach for assigning probabilities is used, the probability that the next customer will purchase a wireless phone is

a. 0.10
b. 0.90
c. 0.50
d. None of these choices.

Answer 1

Option a, 0.10

Explanation:

Given that of the last 500 customers entering a supermarket, 50 have purchased a wireless phone.

i.e. out of 500 customers 50 customers purchased

Hence probability for any random customer to purchase =
`(50)/(500) =0.10`

Thus we find that if the relative frequency approach for assigning probabilities is used, the probability that the next customer will purchase a wireless phone is

Option a)

0.10

This is based on the assumption that the past pattern of purchase determines the probabiltiy