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A market research rms conducts studies regarding the success of new products. The company is not always perfect in predicting the success. Suppose that there
A market research rms conducts studies regarding the success of new products. The company is not always perfect in predicting the success. Suppose that there is a 50% chance that any new product would be successful (and a 50% chance that it would fail). In the past, for all new products that ultimately were successful, 80% were predicted to be successful (and the other 20% were inaccurately predicted to be failures). Also, for all new products that were ultimately failures, 70% were predicted to be failures (and the other 30% were inaccurately predicted to be successes). What is the a priori probability that a new product would be a success? 0 0.95 O 0.70 O 0.80 Q) 0.50 O 0.60
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