Assume that there are three shopping locations with 500,1,000,and 3,000 square feet of space allocated to outdoor lighting fixtures.A group of potential customers lives 5 minutes from the first location,10 minutes from the second location,and 15 minutes from the third location.The retailer estimates the effect of travel time to be 1.The probability of consumers' shopping at location one is ________.
A) 10 percent
B) 15 percent
C) 25 percent
D) 33 percent

Question

Quizplus · Accepted Answer

The probability of consumers shopping at a location depends on the distance from their residence and the travel time. In this question, the effect of travel time is given as 1, which means that distance is the only factor affecting consumer behavior. As the potential customers live 5, 10, and 15 minutes away, it can be assumed that they will likely choose the nearest location. 
Therefore, the probability of customers shopping at location one, which is 5 minutes away, is the highest among the three options, which is 25 percent (500/2000). Thus, the correct answer is C.

Assume That There Are Three Shopping Locations with 500,1,000,and 3,000