A company that manufactures toothpaste is studying five different package designs. Assuming that one design is just as likely to be selected by a consumer as any other design, what selection probability would you assign to each of the package designs? We would assign a probability of to the design 1 outcome, to design 2, to design 3, to design 4, and to design 5. In an actual experiment, 100 consumers were asked to pick the design they preferred. The following data were obtained. Design Number of Times Preferred 1 10 2 5 3 30 4 40 5 15 Do the data confirm the belief that one design is just as likely to be selected as another? Explain. Yes, the sum of the assigned probabilities is 1. No, a probability of about 0.20 would be assigned using the relative frequency method if selection is equally likely. Yes, the average of the assigned probabilities is 0.20. No, a probability of about 0.50 would be assigned using the relative frequency method if selection is equally likely.

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Answer:

Correct option: "No, a probability of about 0.20 would be assigned using the relative frequency method if selection is equally likely."

Step-by-step explanation:

The assumption made is that all the 5 different packages are equally likely, i.e. the probability of selecting a package is [tex]\frac{1}{5}=0.20[/tex].

The probability distribution is shown below.

According to the probability distribution:

  • The probability of a person preferring design 1 is,

        [tex]P(X=1)=0.10[/tex]

  • The probability of a person preferring design 2 is,

        [tex]P(X=2)=0.05[/tex]

  • The probability of a person preferring design 3 is,

        [tex]P(X=3)=0.30[/tex]

  • The probability of a person preferring design 4 is,

        [tex]P(X=4)=0.40[/tex]

  • The probability of a person preferring design 1 is,

        [tex]P(X=5)=0.15[/tex]

So it can be seen that the probability of preferring any of the 5 designs are not same.

Thus, the designs are not equally likely.

The correct option is "No, a probability of about 0.20 would be assigned using the relative frequency method if selection is equally likely."

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