Your company provides services to three different industries: automotive, construction, and financial services. These services can be either on a yearly or on a monthly contract. The cross-tabulation table below summarizes this information: Suppose you know that a given client is a construction company and you are interested in the likelihood that this client is on a yearly contract. This is an example of ___.
A) joint probability
B) marginal probability
C) conditional probability
D) a priori probability
E) a posteriori probability

Question

Your company provides services to three different industries: automotive, construction, and financial services. These services can be either on a yearly or on a monthly contract. The cross-tabulation table below summarizes this information:  Suppose you know that a given client is a construction company and you are interested in the likelihood that this client is on a yearly contract. This is an example of ___.
A) joint probability 
B) marginal probability 
C) conditional probability 
D) a priori probability 
E) a posteriori probability

Quizplus · Accepted Answer

This is an example of conditional probability because we are interested in the probability of a certain event (being on a yearly contract) given that we already know the client belongs to a certain industry (construction).

Your Company Provides Services to Three Different Industries: Automotive, Construction