(b) Wing Foot is a shoe franchise commonly found in shopping centres across the United States. Wing Foot knows that its stores will not show a profit unless they gross over $940,000 per year. Let A be the event that a new Wing Foot store grosses over $940,000 its first year. Let B be the event that a store grosses over $940,000 its second year. Wing Foot has an administrative policy of closing a new store if it does not show a profit in either of the first 2 years.

The accounting office at Wing Foot provided the following information: 65% of all Wing Foot stores show a profit the first year; 71% of all Wing Foot stores show a profit the second year (this includes stores that did not show a profit the first year); however, 87% of Wing Foot stores that showed a profit the first year also showed a profit the second year.

Compute the following: (i) P(A) (ii) P(B) (iii) P(B|A) (iv) P(A and B) (v) P(A or B) (vi) What is the probability that a new Wing Foot store will not be closed

after 2 years? What is the probability that a new Wing Foot store will be closed after 2 years?