Are Customers More Loyal in the East or in the West

question 4

Multiple Choice

Are customers more loyal in the East or in the West? The following table is based on information from Trends in the United Sates, published by the food marketing Institute, Washington, D.C. The columns represent loyalty (in years) at a primary supermarket. The rows represent regions of the United States. What is the probability that a customer chosen at random is from the South given that he or she has been loyal 15 or more years? Round your answer to the nearest thousandth.
$$\begin{array} { l c r r r r r r } &\text { Less Than } & 1-2 & 3-4 & 5-9 & 10-14 & 15 \text { or More } & \text { Row Total } \\&1 \text { Year } & \text { Years } & \text { Years } & \text { Years } & \text { Years } & \text { Years }\\\text { East } & 32 & 54 & 59 & 112 & 77 & 118 & 452 \\\text { Midwest } & 31 & 68 & 68 & 120 & 63 & 173 & 523 \\\text { South } & 53 & 92 & 93 & 158 & 106 & 158 & 660 \\\text { West } & 41 & 56 & 67 & 78 & 45 & 86 & 373 \\\text { Column Total } & 157 & 270 & 287 & 468 & 291 & 535 & 2008\end{array}$$

• A)0.079
• B)0.239
• C)0.295
• D)0.417
• E)none of these choices

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Definitions:

Diagnosis

The identification of the nature of an illness or other problem through examination of the symptoms and sometimes involving diagnostic tests.

Anchoring Effect

A cognitive bias where individuals rely too heavily on an initial piece of information (the "anchor") when making decisions.

Base Rate Fallacy

A cognitive bias where individuals misjudge the likelihood of an event due to ignoring general statistical information in favor of specific information.

Availability Heuristic

describes a cognitive bias where individuals estimate the likelihood of an event based on how easily examples come to mind.