Q3. A dealer of several banquet halls knows from past experience that 10% of the people who

visit the

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?