Suppose That 70% of the Orders on a Particular Website

question 43

Essay

Suppose that 70% of the orders on a particular website are shipped to the person who is making the order and the remaining 30% are shipped to people other than the person placing the order. Gift wrapping is requested for 60% of the orders being shipped to other people, but for only 10% of orders shipped to the person making the order.
a)What is the probability that a randomly selected order will be gift wrapped and sent to another person?
b)What is the probability that a randomly selected order will be gift wrapped?
c)Is gift wrapping independent of the destination of the gift? Justify your response statistically.

---

Definitions:

Accounts Payable

Money owed by a business to its suppliers or creditors for goods and services received but not yet paid for.

Revolving Credit Agreement

A credit arrangement that allows a company or individual to borrow, repay, and borrow again up to a certain credit limit.

Commitment Fee

A fee charged by a bank for guaranteeing to have loanable funds available. The fee is charged on un borrowed amounts up to the maximum of the guarantee. See Revolving credit agreement.

Line of Credit

An arrangement between a financial institution and a customer that establishes a maximum loan balance the borrower can access.