Find probability that the consumer use a plastic card

Reference no: EM13144953

Statistics help! Visa card USA studied how frequency young consumers, ages 18 to 24, use plastic(debit&credit)?
cards in making purchases. The results of the study provided the following probabilities:
-The probability that a consumer uses a plastic card when making a purchase is0.37
- Given that the consumer uses a plastic card, there is a 0.19 probability that the consumer is 18 to 24 years old
-Given that the consumer uses a plastic card, there is a 0.81 probability that the consumer is more than 24 years old.

U.S Census data show that 14% of the consumer population is 18 to 24 years old.
a. Given the consumer is 18 to 24 years old, what is the probability that the consumer use a plastic card?
b. Given the consumer is over 24 years old, what is the probability that the consumer uses a plastic card?
c. What is the interpretation of the probabilities shown in part a and b?
d. Should companies such as Visa, Mastercard and Discover make plastic card available to the 18 to 24 years old age group before these consumers have had time to establish a credit history? If no, why? If yes, what restrictions might the companies place on this age group?

Reference no: EM13144953

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