Question Help The editor of a textbook publishing company is trying to decide wh

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Question Help The editor of a textbook publishing company is trying to decide whether to publish a proposed business statistics textbook. Information on previous textbooks published indicate that 10% are huge successes, 20% are modest successes, 30% break even, and 40% are losers. However, before a publishing decision is made, the book will be reviewed. In the past, 97% of the huge successes received favorable reviews, 70% of the moderate successes received favorable reviews, 40% of the break-even books received favorable reviews, and 30% of the losers received favorable reviews. Complete parts (a) and (b). a. If the proposed textbook receives a favorable review, how should the editor revise the probabilities of the various outcomes to take this information into account? The probability that if the proposed textbook receives a favorable review, the book will be a huge success is nothing. (Round to three decimal places as needed.)

Explanation / Answer

here probability of favourable review =P(huge success and fav review+modest success and fav review+ break even and fav review+loser and fav review)=0.1*0.97+0.2*0.7+0.3*0.4+0.4*0.3=0.477

hence probability the book will be a huge success given receives a favorable review

=P(huge success and fav review)/P(fav review) =0.1*0.97/0.477=0.203

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