SCENARIO 4-13 A Survey Is Taken Among Customers of a Fast-Food Restaurant

question 393

Short Answer

SCENARIO 4-13
A survey is taken among customers of a fast-food restaurant to determine preference for hamburger or
chicken. Of 200 respondents selected, 75 were children and 125 were adults. 120 preferred hamburger
and 80 preferred chicken. 55 of the children preferred hamburger.
-Referring to Scenario 4-13, assume we know that a person prefers hamburger. The probability
that this individual is a child is __________.

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Definitions:

Fire Insurance

A type of property insurance that covers damage and losses caused by fire, providing financial compensation to the insured.

Utility Function

A formula used to quantify the satisfaction consumers derive from consuming various goods and services.

Risk Behaviors

Actions that expose individuals to a significant risk of harm or loss, often scrutinized in health, finance, and safety studies.

Expected Payoff

The anticipated return or outcome from an investment or decision, taking into account all possible scenarios.