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Unformatted text preview: weeks sales were low so: p (next week’s sales will be low | the competitor advertises) = 32/64 = 0.50 (continued… b) If the events were independent we would expect the food company’s probability of high sales to be the same irrespective of whether the competitor advertised. i.e. p (high sales) = p (high sales | competitor advertises) but p (high sales) = 0.34 , whereas p (high sales | competitor advertises) = 0.28 so, if the competitor advertises, it appears to lower the chances of the food company achieving high sales, i.e. the events appear to be dependent. However, this conclusion is based on a sample of sales records for only 120 weeks, so we cannot be certain that this is the case....
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This note was uploaded on 03/29/2010 for the course DMVS 324 taught by Professor Muller during the Spring '10 term at Stellenbosch University-South Africa.
- Spring '10