A researcher at a large department store finds that 30% of customers are coerced into buying an item. The researcher also finds that when coerced to buy an item, the shopper returns the item for refund 20% of the time. If a shopper is not coerced into buying an item then that item is returned 1% of the time. i) Construct a fully labelled tree diagram to represent the above information. Hint: Firstly use C to represent the event that a shopper is coerced into buying an item and then use R to represent the event that an item is returned ii) Identify the branches on your tree diagram where an item is returned and use this to calculate the probability that an item is returned. iii) Given an item is returned, calculate the probability that the shopper had been coerced into buying it.
A researcher at a large department store finds that 30% of customers are coerced into
buying an item. The researcher also finds that when coerced to buy an item, the
shopper returns the item for refund 20% of the time. If a shopper is not coerced into
buying an item then that item is returned 1% of the time.
i) Construct a fully labelled tree diagram to represent the above information. Hint:
Firstly use C to represent the event that a shopper is coerced into buying an item
and then use R to represent the event that an item is returned
ii) Identify the branches on your tree diagram where an item is returned and use this
to calculate the probability that an item is returned.
iii) Given an item is returned, calculate the probability that the shopper had been
coerced into buying it.
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