Probability of visa card usa

Assignment Help Basic Statistics

Reference no: EM13100655

Visa Card USA studied how frequently young consumers, ages 18 to 24, use plastic cards in making purchases. The results of the study provided the following probabilities.

-The probability that a consumer uses plastic card when making a purchase is .37.

-Given that the consumer uses a plastic card, there is a .19 probability that the consumer is 18-24 years old.

-Given that the consumer uses a plastic card, there is a .81 probability that the consumer is more than 24 years old.

U.S. Census Bureau data show that 14% of the consumer population is 18-24 years old.

A. Given the consumer is 18-24 years old, what is the probability that the consumer uses 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 parts (a) and (b)?

D. Should companies such as Visa, MasterCard, and Discovery make plastic cards available to the 18-24 year-old age group before these consumers have had time to establish credit history? If no, why? If yes, what restrictions might the companies place on this age group?

Reference no: EM13100655

Questions Cloud

Question-continuous probability distribution : Now we are going to talk about continuous probability distributions. In a continuous probability distribution, the variable can have a value within a range.

Find the maximum rms current allowed in the primary circuit : Find the maximum rms current allowed in the primary circuit.

Least squares for fitting trends in an annual time series : If you are using the method of least squares for fitting trends in an annual time series containing 25 consecutive yearly values.

At that time how much energy is stored : A coil with resistance 0.05( and self-inductance 0.01H is connected across a 12-volt battery of negligible internal resistance. a) How long after the switch is closed will the current reach 95% of its final value.

Probability of visa card usa : Visa Card USA studied how frequently young consumers, ages 18 to 24, use plastic cards in making purchases. The results of the study provided the following probabilities.

Calculate labor productivity for the initial situation : Gibson Products produces cast bronze valves for use in offshore oil platforms. Currently, Gibson produces 1600 valves per day.

Reliabilty of the five components : A system consists of five identical components connected in parallel. Determine the reliability of the components such that the system reliabilty is 97%.

Describe the situation facing mensa at the time of the case : Describe the situation facing Mensa at the time of the case. This should include the major issues facing the company and the decisions that need to be made.

Explain how department help with reimbursement : Health care reimbursement and know how your department can help with reimbursement. Write the most significant functions of health information management.

User Account

All Pages