STATISTICS

| December 22, 2015

Purchase Behavior for Big-Screen Televisions

Planned To Purchase

Actually Purchased

Yes

No

Total

Yes

200

50

250

No

100

650

750

Total

300

700

1000

In the above table, households are classified according to whether they planned to purchase and whether they actually purchased big-screen

televisions. Draw the Decision Tree for this example.

Purchase Behavior Regarding Plasma Screen Televisions and DVR.
Purchased Plasma Screen

Purchased DVR

Yes

No

Total

Plasma Screen

38

42

80

Not Plasma Screen

70

150

220

Total

108

192

300

Using the cross-classified data above, construct the decision tree. Use your Decision Tree to find the probability that a household

purchased a DVR, given that the household purchased a plasma-screen television.

(Note: the probability formulas for question 2 are listed below)

The probability of A given B is equal to the probability of A and B divided by the probability of B.

P(A/B) = P(A and B)/P(B)

The probability of B given A is equal to the probability of A and B divided by the probability of A.

P(B/A) = P(A and B)/P(A)

Where:

P(A and B) = joint probability of A and B

P(A) = marginal probability of A

P(B) = marginal probability of B

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