Of the last 500 customers entering a supermarket, 50 have purchased a wireless phone. If the relative frequency approach for ass
igning probabilities is used, the probability that the next customer will purchase a wireless phone is a. 0.10
b. 0.90
c. 0.50
d. None of these choices.
Given that of the last 500 customers entering a supermarket, 50 have purchased a wireless phone.
i.e. out of 500 customers 50 customers purchased
Hence probability for any random customer to purchase =
Thus we find that if the relative frequency approach for assigning probabilities is used, the probability that the next customer will purchase a wireless phone is
Option a)
0.10
This is based on the assumption that the past pattern of purchase determines the probabiltiy