Chapter 10, Problem 11CT

To determine

To identify:

The company which one will choose.

Answer to Problem 11CT

The company which one will choose is company $C$ .

Explanation of Solution

Given information:

  

Calculation:

First, make a table of two-way table based on the results

	Satisfied	Not Satisfied	Total
Company $A$	$0.17$	$0.08$	$0.25$
Company $B$	$0.17$	$0.13$	$0.30$
Company $C$	$0.25$	$0.21$	$0.46$
Total	$0.59$	$0.42$	$1$

Now, find the conditional probabilities by dividing each in the satisfied column by the marginal relative frequency in its corresponding row.

  $\begin{array}{l}P\left(satisfied|A\right)=\frac{P\left(satisfiedandA\right)}{P\left(A\right)}\\ =\frac{0.17}{0.59}\\ =0.29\\ P\left(satisfied|B\right)=\frac{P\left(satisfiedandB\right)}{P\left(B\right)}\\ =\frac{0.17}{0.59}\\ =0.29\\ P\left(satisfied|C\right)=\frac{P\left(satisfiedandC\right)}{P\left(C\right)}\\ =\frac{0.25}{0.59}\\ =0.42\end{array}$

So based on the results, choose route $C$ .