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The Journal of Consumer Research (Aug. 2011) published a study demonstrating the "last name" effect- i.e., the tendency for consumers with last names that begin with a later letter of the alphabet to purchase an item before consumers with last names that begin with earlier letters. To facilitate the analysis, the researchers assigned a number, x, to each consumer based on the first letter of the consumer's last name. For example, last names beginning with "A" were assigned x = 1, last names beginning with "B" were assigned x = 2, and last names beginning with "Z" were assigned x = 26. Do you believe the probability distribution in part a is realistic? Explain. How might you go about estimating the true probability distribution for x?
Solution
VerifiedThe letter occurs much more often than the letter and thus the probability of needs to be much larger than the probability of (as is the 19th letter and is the 24th letter).
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