Before market research was done, Peter Martin believed that there was a 50-50 chance that his food store would be a success. The research team determined that there was a 0.75 probability that the market research would be favorable, given a successful food store. Moreover, there was a 0.65 probability that the market research would be unfavorable, given an unsuccessful food store. This information is based on past experience.
(a) If the market research is favorable, what is Peter’s revised probability of a successful food store?
(b) If the market research is unfavorable, what is Peter’s revised probability of a successful food store?