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Customers visit a Web site, and the probability of an order if a customer views five or fewer pages is \(0.01 .\) However, if a customer views more than five pages, the probability of an order is 0.1. The probability a customer views five or more pages is 0.25 The customers behave independently. a. Is the number of customers who visit the site until an order is obtained a geometric random variable? Why or why not? b. What is the probability that the first order is obtained from the 10 th customer to visit the site?

Short Answer

Expert verified
a. No, the trials do not have constant probability. b. The probability is approximately 0.0159.

Step by step solution

01

Understanding Geometric Random Variables

A geometric random variable counts the number of trials needed to get the first success in a sequence of independent Bernoulli trials, where each trial has the same probability of success. In this problem, each customer viewing the website can be seen as a trial, and ordering is the success.
02

Determining if the Situation is Geometric

We have two probabilities based on page views: if a customer views 5 or fewer pages, the probability of ordering (success) is 0.01, and if they view more than 5 pages, it's 0.1. The probability of viewing more than 5 pages is different from viewing 5 or fewer pages, and does not represent a constant success rate per trial.
03

Conclusion on Geometric Nature

Since the probability of success (placing an order) is not constant for all trials (customers), the number of customers until the first order is not a geometric random variable.
04

Setting Up for Probability Calculation

To calculate the probability that the first order comes from the 10th customer, we need to consider that the first 9 customers do not place an order, and the 10th customer does. The situation can be treated as an independent sequence for each possible scenario (fewer than 5 pages or 5 or more pages).
05

Calculating Probability with Conditional Probabilities

For the first 9 customers not ordering, the probability is \((1 - 0.01 \times 0.75)\), because 75% of customers view 5 or fewer pages with a 0.01 order probability. For the 10th customer ordering after either occurring page view, use the law of total probability to find the probability of success on the 10th: \(0.75 \times 0.01 + 0.25 \times 0.1\).
06

Determining Probability for Each Scenario

Compute the probabilities: - Probability of not ordering the first 9 times is \((0.9925)^9\). - Probability of ordering on the 10th: \(0.0175\).
07

Calculating the Desired Probability

Multiply the probabilities for scenarios: \[ (0.9925)^9 \times 0.0175 \approx 0.0159 \].
08

Interpreting the Calculation

The probability that the first order is obtained from the 10th customer is approximately 0.0159, based on the independent customer behavior assumptions.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Independent Bernoulli Trials
The foundation of many probability problems revolves around understanding the nature of trials, particularly Bernoulli trials. A Bernoulli trial is a random experiment with only two possible outcomes—'success' or 'failure'. When trials are independent, the outcome of one trial doesn’t affect the others. This is very much like flipping a fair coin, where each flip doesn't change the fairness of the next flip.
The problem involves customers visiting a website, and each visit can be seen as a Bernoulli trial with success defined as placing an order. The independence here is crucial; each customer behaves independently, meaning one customer ordering or not does not influence another customer's decision. The independence allows us to compute probabilities sequentially for separate customer visits, essential for handling the probabilities over multiple visits.
Probability Calculation
Calculating probabilities might seem tricky at first, but it's all about breaking it down into manageable parts. In our problem, we're dealing with different probabilities depending on the number of pages a customer views:
  • If 5 or fewer pages are viewed, there's a 1% probability of ordering.
  • If more than 5 pages are viewed, there's a 10% probability of ordering.
To find the probability of a specific event—like the 10th customer being the first to order after 9 customers didn't order—we use these individual probabilities while maintaining the fact that each customer behaves independently. We multiply the probability of 9 failures by the 10th customer's success probability to achieve this.
Conditional Probability
Conditional probability is vital when the probability of an event depends on another event occurring. In our scenario, the probability of ordering changes based on how many pages are viewed.
If a customer views five or fewer pages, there's just a 0.01 chance of them ordering. However, if they view more than five pages, this probability jumps to 0.1. Therefore, the ordering probability is contingent upon the page views, illustrating conditional probability in action. Understanding this interdependency helps form more precise computations and also sheds light on dependency between events where the behavior changes based on these conditions.
Law of Total Probability
The Law of Total Probability is like a bridge connecting various scenarios to provide a complete probability picture. For our problem, it helps us calculate the probability of a customer placing an order regardless of the number of pages they view.
This involves splitting all possible events into exhaustive scenarios—in this case, viewing fewer than 5 pages or viewing 5 or more pages:
  • Probability of viewing fewer than 5 pages multiplied by the order probability (0.01).
  • Probability of viewing 5 or more pages multiplied by the order probability (0.1).
By summing these, we account for all possible ways a customer might place an order, according to their page-view behavior. This holistic approach, using the probabilities of distinct cases and summing their influence is what makes the Law of Total Probability so powerful.

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