SCENARIO 4-12 A Consulting Firm That Surveyed Consumers' Holiday Shopping Behavior Found

question 127

Short Answer

SCENARIO 4-12
A consulting firm that surveyed consumers' holiday shopping behavior found that the percentage of
consumers from the U.S., Canada, and China who said that they planned to spend more on holiday
shopping were 40%, 34% and 73%, respectively. The survey also found that the percentage of
consumers from the U.S., Canada, and China who said that they were willing to share personal
information with retailers in order to receive personalized offers from retailers were 55%, 46% and
72%, respectively. Assume that there are equal portions of consumers being surveyed from each of
the three countries, the survey results are good representations of the three populations of consumers,
and whether a consumer plans to spend more on holiday shopping is statistically independent of
whether he/she is willing to share personal information with retailers in order to receive personalized
offers from retailers.
-Referring to Scenario 4-12, if you randomly select a consumer from China, what is the
probability that the consumer plans to spend more on holiday shopping and is willing to share
personal information with retailers in order to receive personalized offers from retailers?

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Definitions:

Circulation Numbers

Refers to the number of units (such as newspapers or magazines) distributed to the public within a specified time frame.

Marginal Product

The Marginal Product is the additional output that is produced by employing one more unit of a factor of production, holding other factors constant.

Labor

Any mental or physical exertion on the part of a human being that is used in the production of a good or service. One of the four economic resources.

Output

In economic terms, this signifies total products or services that have been manufactured or provided by a company in a particular period, acting as a measure of productivity.