Question
A particular shoe franchise knows that its stores will not show a profit unless they gross over $940,000 per year. Let A be the event
A particular shoe franchise knows that its stores will not show a profit unless they gross over $940,000 per year. LetAbe the event that a new store grosses over $940,000 its first year. LetBbe the event that a store grosses over $940,00 its second year. The franchise has an administrative policy of closing a new store if it does not show a profit ineitherof the first 2 years. The accounting office at the franchise provided the following information:67%ofallthe franchise stores show a profit the first year;71%ofallthe franchise stores show a profit the second year (this includes stores that did not show a profit the first year); however,89%of the franchise stores that showed a profit the first year also showed a profit the second year. Compute the following. (Enter your answers to four decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started