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Use the following scenario and data for all questions QUESTION 4 Given a parent

ID: 335809 • Letter: U

Question

Use the following scenario and data for all questions

QUESTION 4

Given a parent initially purchased Brand B, the probability that this parent purchases Brand A on the second purchase is

(0.75)(0.75)+(0.25)(0.20) = 0.5625 + 0.0500 = 0.6125

(0.20)(0.25)+(0.80)(0.80) = 0.0500 + 0.6400 = 0.6900

(0.20)(0.75)+(0.80)(0.20) = 0.1500 + 0.1600 = 0.3100

(0.75)(0.25)+(0.25)(0.80) = 0.1875 + 0.2000 = 0.3875

None of the above

  

QUESTION 5

Given a parent initially purchased Brand B, the probability that this parent purchases Brand B on the second purchase is

(0.75)(0.75)+(0.25)(0.20) = 0.5625 + 0.0500 = 0.6125

(0.20)(0.25)+(0.80)(0.80) = 0.0500 + 0.6400 = 0.6900

(0.20)(0.75)+(0.80)(0.20) = 0.1500 + 0.1600 = 0.3100

(0.75)(0.25)+(0.25)(0.80) = 0.1875 + 0.2000 = 0.3875

None of the above

A)

(0.75)(0.75)+(0.25)(0.20) = 0.5625 + 0.0500 = 0.6125

B)

(0.20)(0.25)+(0.80)(0.80) = 0.0500 + 0.6400 = 0.6900

C)

(0.20)(0.75)+(0.80)(0.20) = 0.1500 + 0.1600 = 0.3100

D)

(0.75)(0.25)+(0.25)(0.80) = 0.1875 + 0.2000 = 0.3875

E)

None of the above

Explanation / Answer

4-E. The transition probability will be (0.75)(0.80)+(0.25)(0.20) = 0.6000 + 0.0500 = 0.6500

5-E-(0.75)(0.20)+(0.25)(0.80)=0.15+0.2=0.35