Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You own a pottery business that sells beautiful kiln fired mugs. You have classified customers at your online pottery store as either: Loyalty program members

You own a pottery business that sells beautiful kiln fired mugs. You have classified customers at your online pottery store as either: Loyalty program members (20% of all customers), regular shoppers (60% of all customers), or occasional shoppers (20% of all customers).

When you have a new batch of mugs for sale you've found that 70% of loyalty programme members will buy a mug, 30% of regular shoppers buy a mug and 10% of occasional shoppers buy a mug. Mugs are sold for $30 each but loyalty programme members get a discount of $5. (Show all working)

  1. What proportion of customers will purchase a mug?
  2. Given that someone buys a mug what is the probability that they are a member of the loyalty program? Show your working.
  3. What is the average revenue per customer for a new batch of mugs? (NB Remember to include customers who don't buy a mug in your calculations.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Calculus Early Transcendental Single Variable

Authors: Howard Anton, Irl C Bivens, Stephen Davis

11th Edition

1118885589, 9781118885581

More Books

Students also viewed these Mathematics questions