thank you Based on Data, the probability of Fun Land earning a profit is 50%, th
ID: 2502345 • Letter: T
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thank you
Based on Data, the probability of Fun Land earning a profit is 50%, the probability of breaking even is 30%, and the probability of losing money is 20%. Historically if Fun Land earned a profit the economy was good 80% of the time, if Fun Land broke even the economy was good 45% of the time, and if Fun Land lost money the economy was good 25% of the time. Fun Land is opened this week and the current economy is not good. What is the probability of Fun Land making a profit? What is the probability of Fun Land breaking even? What is the probability of a good economy? What is the probability of a not good economy?Explanation / Answer
PROBABILITY OF FUN LAND MAKING A PROFIT = 0.50*0.20
=0.1
=10%
PROBABILITY OF FUN LAND BREAKING EVEN = 0.30*0.55
=0.165
=16.5%
PROBABILITY OF A GOOD ECONOMY = 0.50*0.80 + 0.30*0.45 + 0.20*0.25
=0.4+0.135+0.05
=0.585
=58.5%
PROBABILITY OF NOT A GOOD ECONOMY = 1-0.585
=0.415
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