2:47 PM e webassign.net E Description Assignment Submission For this assignment,

Question

2:47 PM e webassign.net E Description Assignment Submission For this assignment, you submit answers by questions. You are required to use a new covers sections 4.1, 42.4.3 ater every 3 question Assignment Scoring Your best submission for each question part is used for your score 0.16/1.16 points 1/100 S A particuler shoe franchise 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 store grosses over $940,000 its first year. Let B be the event that a store grosses over $940,00 its second year. The franchise has an administrative policy of closing a new store if it does not show a profit in elther of the first 2 years. The accounting office at the franchise provided the following information: 65% of all the franchise stores show a profit the first year: 71% of all the franchise stores show a profit the second year (this includes stores that did not show a profit the first year); however, 89% of the franchise stores that showed a profit the first year also showed a profit the second year. Compute the following. (Enter your answers to four decimal places.) (a) PLA) (b) PIB) (C) P(B IA) (d) PIA and B) (e) PA or B) (f) What is the probability that a new store will not be closed after 2 years? What is the probability that a new store will be closed after 2 years? Need Help? Submit Answer Save Progress View Previous Question Question 21 of 30 View Next Question Home My Assignenents Extension Reques

Explanation / Answer

A: The new store grosses over $940,000 its first year.

B: The store grosses over $940,000 its second year.

Given: P(A) =0.65, P(B)=0.71 and P(B|A)=0.89

(a) P(A) = 0.65

(b) P(B)=0.71

(c) P(B|A) =0.89

(d) P(A and B)=P(B|A) P(A) = 0.89*0.65 = 0.5785

(e) P(A or B)= P(A) +P(B) -P(A and B) = 0.65+0.71 - 0.5785 = 0.7815

(f) P(a new store will not be closed) =P(there is profit in either of the first 2 years) = P(A or B)= 0.7815

(g)P(a new store will be closed) =1-P(a new store will not be closed) = 1 - 0.7815 = 0.2185

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.