Question

Suppose you want to estimate the probability that a randomly selected customer at a particular grocery store will pay by credit card. Over the past 3 months, 70,600 purchases were made, and 22,200 of them were paid for by credit card. What is the estimated probability that a randomly selected customer will pay by credit card?

Answer 1

To estimate the probability that a randomly selected customer at the grocery store will pay by credit card, divide the number of purchases paid for by credit card by the total number of purchases. The estimated probability is 0.3142.

Step-by-step explanation:

To estimate the probability that a randomly selected customer at the grocery store will pay by credit card, we can divide the number of purchases paid for by credit card by the total number of purchases. In this case, there were 22,200 purchases paid for by credit card out of 70,600 total purchases. So, the estimated probability is:

P(credit card payment) = 22,200 / 70,600 = 0.3142

Therefore, the estimated probability that a randomly selected customer will pay by credit card is approximately 0.3142.