Question
In: Statistics and Probability
Applegate Inc. has developed a new shampoo with a distinctive fragrance. Before distributing it nationally, Applegate...
Applegate Inc. has developed a new shampoo with a distinctive fragrance. Before distributing it nationally, Applegate will test market the new product. The joint probability of a successful test market and high sales upon national distribution is 0.5. The joint probability of a successful test market and low sales nationally is 0.1. The joint probabilities of an unsuccessful test market and either high or low sales are both 0.2.
Construct a joint probability table and then answer the following questions.
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Questions |
Answers |
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a. |
What is the marginal probability of a successful test market? |
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b. |
What is the conditional probability of high sales given a successful test market? |
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c. |
What is the conditional probability of a successful test market given that the product is destined for high sales nationally? |
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Solutions
Expert Solution
Answer:
a) Consider the above table which is given as below.
b) Consider the above table.
c) consider the joint probability table.
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