Question

tuse n a s gac . or us ronto m into Awa k to d pr door isconsidering int du nga new prodotto o o su er market an o ose tobid an w cǐ yor r du tonof h aroter ompany. The company estrates that he probabity of strong demand for this proud to be 85%and the probablity of weak demand is research firm to conduct a study to provide additional information about the demand that has the folowing track reoord w pr esarnated at 1 5% The company aiso has te oan thre a manerg Hatrically, tis research firm has predicted a strong dem and when to omtal denard was strong 70% of the time Hanncaly, this research firm has prodded a weak demand when te evental demand was weak 80%ofthe time. The probability that the market survey will predict a strong demand is O A. 0.625 08. 0455 C 0.565 D. 0.555

Answer 1

Here' the answer to the question. Please don't hesitate to give a "thumbs up" in case you're satisfied with the answer

p(strong demand) = .85

p(weak demand) = .15

p(predict strong demand when demand was strong) = .70

p(predict weak demand when demand was weak) = .80

p(market survey will predict a strong demand)

= p(strong demand)*p(predict strong demand when demand was strong) + p(weak demand)*p(predict strong demand when demand was weak)

= .85*.70 + .15*(1-.80)

=0.625

Answer is A