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Aleem runs a business on Front Street. His store has been badly harmed by covid and he is worried it will be forced to close.
Aleem runs a business on Front Street. His store has been badly harmed by covid and he is worried it will be forced to close. Out of the 20 other businesses along the street, 5 have been forced to close. If Aleem continues to have few customers in future he sees no reason to think that his own business' chance of survival will be better or worse than what has happened to his neighbours. However, on Friday the city held a street festival which was very successful, and many people visited the neighbourhood. Aleem had many new customers on that day, but it was only a one day festival. Aleem thought about the long term. If his business was going to be being forced to close then the probability of having so many new customers the day of the festival would have been low. (80% chance that he would not have had many new customers). Conversely, even if economic conditions were such that his business would survive then he would have thought there were only 50:50 odds of getting so many new customers on that day. After seeing the new customers he had on the day of the festival, what confidence should he have that his business will be forced to close? Based on the above passage, choose the best option below: A. The prior odds that his business would fail are 25. B. If economic conditions were as bad as Aleem feared then there was no chance that his business could survive. C. Evidence should not matter to our confidence levels, since confidence is just a matter of personal opinion. D. The probability of not having a lot of new customers on the day of the festival was 80% if the business was on the road to failure, so the probability that his business would have many new customers on the day of the festival if it was failing would be 20%. E. One day of increased customers is not evidence that Aleem's business will survive, for the probability of a good day if the business will survive is only 50%. F. Good sales on one day are not evidence of consistent future success
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