Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A market research institute determines that 80% of all newly introduced products flop in a certain branch. But even when the decision to mass produce

A market research institute determines that 80% of all newly introduced products flop in a certain branch. But even when the decision to mass produce a new product is based on the results of a test market, mistakes happen. From past experience, we know that 70% of successful products performed well in the test market. In 20% of cases, they performed mediocrely, and in 10% of cases they performed poorly. With flops, it's exactly the opposite.

(a) Represent the individual probabilities using a probability tree.

(b) How great is the probability that test market success will mean general market success? (c) A product achieves good test market results. What are the odds that it nevertheless flops?

(d) What is the probability that a product performs well in the test market or turns out a flop?

(e) What is the probability that a product performs poorly in the test market and is a flop?

I want 'part e' specifically

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elementary Differential Geometry

Authors: Christian Bar

1st Edition

051173123X, 9780511731235

More Books

Students also viewed these Mathematics questions

Question

1. Dont say, This is easy, I know you can do it.

Answered: 1 week ago