Consider the following probability table: Purchase<=$200 Purchase>$200 Teen 0.20 0.25 Adult under 40 0.10 0.10 Adult 40 or over 0.15 0.20 If I tell you the customer is an adult, what is the probability they make a purchase for more than $200?
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.
Consider the following probability table:
| Purchase<=$200 | Purchase>$200 | |
| Teen | 0.20 | 0.25 |
| Adult under 40 | 0.10 | 0.10 |
| Adult 40 or over | 0.15 | 0.20 |
If I tell you the customer is an adult, what is the probability they make a purchase for more than $200?
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