Your company provides services to three different industries: automotive,construction,and financial services.These services can be either on a yearly or on a monthly contract.The cross-tabulation table below summarizes this information: Suppose you know that a given client is a construction company and you are interested in the likelihood that this client is on a yearly contract.This is an example of _______.
A) joint probability
B) marginal probability
C) conditional probability
D) a priori probability
E) a posteriori probability

Question

Your company provides services to three different industries: automotive,construction,and financial services.These services can be either on a yearly or on a monthly contract.The cross-tabulation table below summarizes this information:  Suppose you know that a given client is a construction company and you are interested in the likelihood that this client is on a yearly contract.This is an example of _______.
A) joint probability 
B) marginal probability 
C) conditional probability 
D) a priori probability 
E) a posteriori probability

Quizplus · Accepted Answer

We are interested in finding the probability that the client is on a yearly contract given that they belong to the construction industry. This type of probability is known as conditional probability, where we calculate the probability of an event (yearly contract) given that another event (construction industry) has occurred.

Your Company Provides Services to Three Different Industries: Automotive,construction,and Financial