Question

Part B : The data science team also seeks to understand the impact on customer loyalty with respect to another type of cancellation: traveler cancellations. The repeat booking rate for owner cancellations is 20%; for traveler cancellations, 28%; and no cancellation, 36%. If the overall repeat booking rate is 34%, and the probability of an owner cancellation is 8%, what is the probability of a traveler cancellation

Answer 1

Answer: 0.28 or 28%

Explanation:

We know that the probability of an event is the likelihood of that event occurring.

It is already given that, the percentage of traveler cancellations =28% which is determining the chances of traveler cancellations.

That means, the probability of a traveler cancellation= 28%

In decimal , the required probability = 0.28 [To convert % to decimal, we divide it by 100]

Hence, the probability of a traveler cancellation = 0.28 or 28%