A car dealership knows from past experience that 10% of the people who come into the showroom and talk to a salesperson will eventually purchase a car. To increase the chances of success, you propose to offer a free dinner with a salesperson for all people who agree to listen to a complete sales presentation. You know that some people will do anything for a free dinner, even if they do not intend to purchase a car. However, some people would rather not spend a dinner with a car salesperson. Thus, you wish to test the effectiveness of this sales promotion incentive. The project is conducted for 6 months, and 40% of the people who purchased cars had a free dinner. In addition, 10% of the people who did not purchase cars had a free dinner.The specific questions to be answered are the following:a. Do people who accept the dinner have a higher probability of purchasing a new car?b. What is the probability that a person who does not accept a free dinner will purchase a car?
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.
A car dealership knows from past experience that 10% of the people who come into the showroom and talk to a salesperson will eventually purchase a car. To increase the chances of success, you propose to offer a free dinner with a salesperson for all people who agree to listen to a complete sales presentation. You know that some people will do anything for a free dinner, even if they do not intend to purchase a car. However, some people would rather not spend a dinner with a car salesperson. Thus, you wish to test the effectiveness of this sales promotion incentive. The project is conducted for 6 months, and 40% of the people who purchased cars had a free dinner. In addition, 10% of the people who did not purchase cars had a free dinner.
The specific questions to be answered are the following:
a. Do people who accept the dinner have a higher
b. What is the probability that a person who does not accept a free dinner will purchase a car?
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