.What is the probability that a customer received a cash advance? b.What is the probability that a customer owed less than $200 and received a cash advance? c.What is the probability that a customer owed less than $200 or received a cash advance?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
The Easy Credit Company reports the following table representing a breakdown of costumers according to the amount the owe and whether a cash advance has been made. An auditor randomly selects one of the accounts.
|
Amounts owed by the customers |
Cash Advance? |
|
|
Yes |
No |
|
|
$0 - $199.99 |
245 |
2890 |
|
$200 - $399.99 |
380 |
1700 |
|
$400 - $599.99 |
500 |
1425 |
|
$600 - $799.99 |
415 |
940 |
|
$800 - $999.99 |
260 |
480 |
|
$1000 or more |
290 |
475 |
|
Total customers |
2090 |
7910 |
a.What is the
b.What is the probability that a customer owed less than $200 and received a cash advance?
c.What is the probability that a customer owed less than $200 or received a cash advance?
d.Given that a customer received a cash advance, what is the probability that the customer owed $1000 or more?
e.Given that a customer owed $1000 or more, what is the probability that the customer received a cash advance?
f.Are the
g.Are the events “receiving a cash advance” and “owning $1000 or more” independent? Explain using probabilities.
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