In February 2002 the Argentine peso lost 70 of its value com

In February 2002 the Argentine peso lost 70% of its value compared to the United States dollar. This devaluation drastically raised the price of imported products. According to a survey conducted by AC Nielsen in April 2002, 68% of the consumers in Argentina were buying fewer products than before the devaluation, 24% were buying the same number of products, and 8% were buying more products. Furthermore, in a trend toward purchasing less-expensive brands, 88% indicated that they had changed the brands they purchased. Suppose the following complete set of results were reported. Use the following data to answer this question.

Number of Products Purchased Brands Purchased Fewer Same More Total Same 10 14 24 48 Changed 262 82 8 352 Total 272 96 32 400 What is the probability that a consumer selected at random purchased fewer products than before and changed brands? Place your answer, rounded to 4 decimal places, in the blank

Solution

In February 2002 the Argentine peso lost 70% of its value compared to the United States dollar. This devaluation drastically raised the price of imported products. According to a survey conducted by AC Nielsen in April 2002, 68% of the consumers in Argentina were buying fewer products than before the devaluation, 24% were buying the same number of products, and 8% were buying more products. Furthermore, in a trend toward purchasing less-expensive brands, 88% indicated that they had changed the brands they purchased. Suppose the following complete set of results were reported. Use the following data to answer this question.

Number of Products Purchased Brands Purchased Fewer Same More Total Same 10 14 24 48 Changed 262 82 8 352 Total 272 96 32 400 What is the probability that a consumer selected at random purchased fewer products than before and changed brands? Place your answer, rounded to 4 decimal places, in the blank

Fewer

same

More

Same

10

14

24

48

changed

262

82

8

352

272

96

32

400

consumers purchased fewer products than before and changed brands =262

P=262/400 =0.6550