Finite Math and Applied Calculus (6th Edition)

Published by Brooks Cole
ISBN 10: 1133607705
ISBN 13: 978-1-13360-770-0

Chapter 7 - Section 7.6 - Bayes' Theorem and Applications - Exercises - Page 518: 9

Answer

$26.8 \%$ of those who minimised or decreased their spending on music were internet users.

Work Step by Step

According to Bayes' theorem: $P(I|D)=\dfrac{P(D|I)P(I)}{P(D|I)P(I)+P(D|I')+P(I')}~~~~~~~~(1)$ Here, we have $P(D|I)= 11 \% =0.11\\ P(I)= 40 \% =0.4\\ P(D|I')=20 \% =0.2$ Now, we will now use formula (1) and the given data to obtain: $P(I|D)=\dfrac{P(D|I)P(I)}{P(D|I)P(I)+P(D|I')+P(I')}=\dfrac{(0.11)(0.4)}{(0.11)(0.4)+(0.2) (1-0.4)}$ or, $=0.268$ or, $=26.8 \%$ Thus, we conclude that $26.8 \%$ of those who minimized or decreased their spending on music were internet users.
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