Reference no: EM1321070
Question: Subscriptions to a particular magazine are classified as gift, previous renewal, direct mail, and subscription service. In January 8 percent of expiring subscriptions were gift; 41 percent, previous renewal; 6 percent, direct mail; and 45 percent, subscription service. The percentages of renewals in these four categories were 81 percent, 79 percent, .60 percent, and 21 percent, respectively. In February of the same year 10 percent of expiring subscriptions were gift; 57 percent, previous renewal; 24 percent, direct mail; and 9 percent, subscription service. The percentages of renewals were 80 percent, 76 percent, 51 percent, and 14 percent, respectively.
[A] Find the probability that a randomly chosen subscription expiring in February was renewed.
[B] Verify mat the probability in part (b) that is higher than that in part (a). Do you believe that the editors of this magazine should view the change from January to February as a positive or negative development?
[C] Find the probability that a randomly chosen subscription expiring in January was renewed.