Q3. A dealer of several banquet halls knows from past experience that 10% of the people who
bookings office and talk to the salesperson will eventually book a hall. To increase the
chances of success, you propose to offer a free lunch with a salesperson for all the chances of
success, you propose to offer a free meal with a salesperson for all people who agree to listen to
a complete sales presentation. You know that some people will do anything for a free lunch even
if they don’t intend to book a hall. However, some people would rather not spend a lunch with a
banquet salesperson. Thus, you wish to test the effectiveness of this sales promotion incentive.
The project is conducted for six months, and rest 40% of the people who made any booking had
a free lunch. In addition, 10% of the people who did not book a hall had a free lunch. The
specific questions to be answered are these:
(a) Do people who accept the lunch have a higher probability of booking a banquet hall?
(b) What is the probability that a person who does not accept a free lunch will book a hall?