Question
In: Economics
The editor of a textbook publishing company is trying to decide whether to publish a proposed...
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, 40% break even, and 30 % are losers. However, before a publishing decision is made, the book will be reviewed. In the past, 99 %of the huge successes received favorable reviews, 60% of the moderate successes received favorable reviews, 50 % 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 _________ (round to 3 decimal places as needed)
-The probability that if the proposed textbook receives a favorable review, the book will be a modest success is_________(round to 3 decimal places as needed)
-The probability that if the proposed textbook receives a favorable review, the book will break even is ________ (round to 3 decimal places as needed)
-The probability that if the proposed textbook receives a favorable review, the book will be a loser is _________(round to 3 decimal places as needed)
b. What proportion of textbooks receives favorable reviews?
-The proportion of textbooks that receive a favorable reviews is_______ (round to 3 decimal places as needed)
Solutions
Rahul Sunny answered 9 months agoRelated Solutions
The editor of a textbook publishing company is trying to decide whether to publish a proposed...
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, 40 % break even, and
30 % are losers. However, before a publishing decision is made,
the book will be reviewed. In the past, 96 % of the huge successes
received favorable reviews, 60 % of the moderate successes
received favorable reviews, 50 %...
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will be reviewed. In the past, 99% of the huge success received
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