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Fundraising by telephone Tree diagrams can organize problems having more than two stages. The figure shows probabilities for a charity calling potential donors by telephone. 24 Each person called is either a recent donor, a past donor, or a new prospect. At the next stage, the person called either does or does not pledge to contribute, with conditional probabilities that depend on the donor class to which the person belongs. Finally, those who make a pledge either do or don鈥檛 actually make a contribution. Suppose we randomly select a person who is called by the charity.

a. What is the probability that the person contributed to the charity?

b. Given that the person contributed, find the probability that he or she is a recent donor

Short Answer

Expert verified

Part a)Probability that the person contributed to the charity is0.2240.

Part b)Probability that the person contributed is a recent donor is approx.0.7143.

Step by step solution

01

Part (a) Step 1:Given information

02

Part (a) Step 2:Calculation

According to multiplication rule for independent events,

P(AandBandC)=P(ABC)=P(A)P(B)P(C)

According to the addition rule for mutually exclusive events:

P(ABC)=P(AorBorC)=P(A)+P(B)+P(C)

Let

R: Recent donor

P: Past donor

N: New prospect

PL: Pledge to contribute

C: Contributor

Now,

For recent donors:

Probability for recent donor,

P(R)=0.5

Probability for recent donor pledge to contribute,

P(PL)=0.4

Probability for recent donor makes contribution,

P(C)=0.8

For past donors:

Probability for past donor,

P(P)=0.3

Probability for past donor makes contribution,

P(C)=0.6

For new prospects:

Probability for new prospect,

P(N)=0.2

Probability for new prospect pledge to contribute,

P(PL)=0.1

Probability for new prospect makes contribution,

P(C)=0.5

Now,

Since each person cannot become all three types of contributor,

Apply multiplication rule for each of the above three cases separately:

For recent donors:

P(RPLC)=P(R)P(PL)P(C)=0.50.40.8=0.1600

For past donors:

P(PPLC)=P(P)P(PL)P(C)=0.30.30.6=0.0540

For new prospect:

P(NPLC)=P(N)P(PL)P(C)=0.20.10.5=0.0100

To get the probability for contributor,

Apply the addition rule for mutually exclusive events:

P(C)=P(RPLC)+P(PPLC)+P(NPLC)

=0.1600+0.0540+0.0100

=0.2240

Thus,

The probability for the randomly selected person contributes to the charity is 0.2240.

03

Part (b) Step 1:Given information

04

Part (b) Step 2:Calculation

From Part (a),

We have

Probability for the person contributes to charity,

P(C)=0.2240

Probability for recent donor and pledged to contribute and contributor,

P(RPLC)=0.1600

It is understood that

Recent donor who contributed was pledged to contribute.

Thus,

P(RPLC)=P(RC)=0.1600

Apply the conditional probability:

P(RC)=P(RC)P(C)=0.16000.22400.7143

Thus,

The conditional probability for the person contributed is a recent donor is approx. 0.7143.

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