Many stores run secret sales: Shoppers receive cards that determine how large a discount they get,but the percentage is revealed by scratching off that black stuff only after the purchase has been totaled at the cash register.The store is required to reveal (in the fine print) the distribution of discounts available.Determine whether the following probability assignment is legitimate. Probability of ... 10 % off 20 % off 30 % off 50 % off 0.05 0.30 0.45 0.10 \begin{array} { l | l | l | l } 10 \% ext { off } & 20 \% ext { off } & 30 \% ext { off } & 50 \% ext { off } \\hline 0.05 & 0.30 & 0.45 & 0.10\end{array} 10% off 0.05 20% off 0.30 30% off 0.45 50% off 0.10 A) LegitimateB) Not legitimate

Question

Many stores run secret sales: Shoppers receive cards that determine how large a discount they get,but the percentage is revealed by scratching off that black stuff only after the purchase has been totaled at the cash register.The store is required to reveal (in the fine print) the distribution of discounts available.Determine whether the following probability assignment is legitimate. Probability of ...   10 %  off  20 %  off  30 %  off  50 %  off  0.05 0.30 0.45 0.10 \begin{array} { l | l | l | l } 10 \% 	ext { off }  &  20 \% 	ext { off }  &  30 \% 	ext { off }  &  50 \% 	ext { off } \\hline 0.05  &  0.30  &  0.45  &  0.10\end{array} 10%  off  0.05 ​ 20%  off  0.30 ​ 30%  off  0.45 ​ 50%  off  0.10 ​ ​ A) LegitimateB) Not legitimate

Lakshay Chadha · Accepted Answer

Final Answer : B, Explanation :  The probability assignment is not legitimate because it does not add up to 1. The given probabilities are 0.06, 0.15, 0.29, 0.35, and 0.05, which add up to 0.90. This means that there is a missing probability of 0.10 that has not been accounted for. In order for a probability assignment to be legitimate, the probabilities must add up to 1.

Definitions

Learning Objectives

Learning Objectives

Related questions