"Questions 4-5 deal with the following information:

GloboSnax has an overall 10% success rate when introducing new products.(Suppose success here means a product achieves a certain target market share within 2 years of its introduction.)

Before roll-out, a secret forecasting committee assesses each new product, and calls it a "winner" or "loser."In the past, the committee has done reasonably well in distinguishing between successful and unsuccessful products:

90% of products that went on to succeed were correctly called "winners" by the committee.

70% of products that went on to fail were correctly called "losers" by the committee.

A new product, CocoChips is evaluated and labeled a "winner" by the committee.

4.(5 pts) Based on the information available, calculate the probability that CocoChips will succeed, given the

"winner" classification from the forecasting committee.(Hint: you can use a 2x2 table, and/or Bayes Rule formula to help compute your answer.)

5.(3 pts) What would be a plausible intuitive probability judgment for the quantity in question 4 from someone exhibiting base-rate neglect?Explain."