At Joe's Restaurant,80 percent of the diners are new customers (N),while 20 percent are returning customers (R).Fifty percent of the new customers pay by credit card,compared with 70 percent of the regular customers.If a customer pays by credit card,what is the probability that the customer is a new customer?

Question

Quizplus · Accepted Answer

P(N|C) = P(N) * P(C|N) / P(C)= 0.8 * 0.5 / (0.8 * 0.5 + 0.2 * 0.7)= 0.4 / 0.54= 0.7407

At Joe's Restaurant,80 Percent of the Diners Are New Customers