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.
|
Questions |
Answers |
|
|
a. |
What is the marginal probability of a successful test market? |
|
|
b. |
What is the conditional probability of high sales given a successful test market? |
|
|
c. |
What is the conditional probability of a successful test market given that the product is destined for high sales nationally? |
|
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.
NOTE:: I HOPE THIS ANSWER IS HELPFULL TO YOU......**PLEASE SUPPORT ME WITH YOUR RATING......
**PLEASE GIVE ME "LIKE".....ITS VERY IMPORTANT FOR,ME......PLEASE SUPPORT ME .......THANK YOU
orchestra answered 2 years agoRelated Solutions
One of the company's perfumers has created a new fragrance and the company is studying the...
One of the company's perfumers has created a new fragrance and
the company is studying the production and marketing of this
innovation on a large scale. The company will rent a factory for
16,000 riyals per month for production purposes. This manufacturer
has already taken an advanced course in perfume composition to help
him create fragrances. The course cost was 15,000 riyals. The
company will pay a bill for renting and insuring the production
equipment at a monthly cost of...
B Inc. has developed a new product, and the consumers are interested in it. As a...
B Inc. has developed a new product, and the consumers are
interested in it. As a result, the firm projects the growth rate of
dividends is 20% per year for 4 years. By then, other firms will
develop similar products, competition will drive down profit
margins, and the sustainable growth rate will fall to 6%. B Inc.
just paid annual dividend of $1 per share. The required return on
the company’s stock is 10%.
What is the stock price today?...
Par, inc. is a manufacturer of golf equipment and has developed a new golf ball that...
Par, inc. is a manufacturer of golf equipment and has developed
a new golf ball that has been designed to provide ‘extra distance.”
In a test if driving distance using a mechanical driving device, a
sample of Par golf balls was compared with a sample of golf balls
made by Rap, Ltd., a competitor (given in the table below). Also,
based on the data from previous driving distance tests, the two
population standard deviations are known with s1= 15
yards...
KB Distributing Inc. has been notified that it has won a lawsuit against a competitor in...
KB Distributing Inc. has been notified
that it has won a lawsuit against a competitor in
Europe for
copyright infringement. Terms of the
judgement stipulate that payment of 500,000 Euros will be
made to KB Distributing Inc. at the
end of twelve months.
The controller of KB Distributing Inc.
has called you in to assist him in assessing options as to what
course of action should be followed to
take best advantage of the judgement.
You determine that the current...
Osceola Electronics, Inc., has developed a new HD DVD. If the HD DVD is successful, the...
Osceola Electronics, Inc., has developed a new HD DVD. If the HD
DVD is successful, the present value of the payoff (at the time the
product is brought to market) is $34.5 million. If the HD DVD
fails, the present value of the payoff is $8.6 million. If the
product goes directly to market, there is a 60 percent chance of
success. Alternatively, Osceola can delay the launch by one year
and spend $1.49 million to test-market the HD DVD....
Osceola Electronics, Inc., has developed a new HD DVD. If the HD DVD is successful, the...
Osceola Electronics, Inc., has developed a new HD DVD. If the HD
DVD is successful, the present value of the payoff (at the time the
product is brought to market) is $29.5 million. If the HD DVD
fails, the present value of the payoff is $7.9 million. If the
product goes directly to market, there is a 60 percent chance of
success. Alternatively, Osceola can delay the launch by one year
and spend $1.14 million to test-market the HD DVD....
Ang Electronics, Inc., has developed a new DVDR. If the DVDR is successful, the present value...
Ang Electronics, Inc., has developed a new DVDR. If the DVDR is
successful, the present value of the payoff (when the product is
brought to market) is $34.5 million. If the DVDR fails, the present
value of the payoff is $12.5 million. If the product goes directly
to market, there is a 40 percent chance of success. Alternatively,
Ang can delay the launch by one year and spend $1.35 million to
test market the DVDR. Test marketing would allow the...
Ang Electronics, Inc., has developed a new HD DVD. If the HD DVD is successful, the...
Ang Electronics, Inc., has developed a new HD DVD. If the HD DVD
is successful, the present value of the payoff (at the time the
product is brought to market) is $34.4 million. If the HD DVD
fails, the present value of the payoff is $12.4 million. If the
product goes directly to market, there is a 60 percent chance of
success. Alternatively, the company can delay the launch by one
year and spend $1.34 million to test-market the HD...
Osceola Electronics, Inc., has developed a new HD DVD. If the HD DVD is successful, the...
Osceola Electronics, Inc., has developed a new HD DVD. If the HD
DVD is successful, the present value of the payoff (at the time the
product is brought to market) is $34 million. If the HD DVD fails,
the present value of the payoff is $6.7 million. If the product
goes directly to market, there is a 60 percent chance of success.
Alternatively, Osceola can delay the launch by one year and spend
$1.24 million to test-market the HD DVD....
Scammers Inc. has developed a new Immune Booster drink (IB) as well as a “cure” for...
Scammers Inc. has developed a new Immune Booster drink
(IB) as well as a “cure” for Covid-19 based on Colloidal Silver
(CS). As the product manager for the firm, you are responsible for
setting the pricing policy for the new products. You are
considering a bundled package that includes both products, and you
assume the marginal cost of production is zero for planning
purposes. You have identified four basic types of customers who may
buy these new products, and their...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Joni is a financial planner for ABC firm. She provided all of her clients with the...
- Suppose you plan to retire in 40 years. If you make 10 annual investments of $...
- PLEASE DONT FORGET TO SOLVE THE ASSIGNMENT QUESTION MOST IMP: Ex1) Download the code from the...
- Customer is saying website is running slow when his end clients are trying to access the...
- Note: The answers to the following questions should be typed in the block of comments in...
- Python Describe the procedure for setting up the display of an image in a window.
- what are the fundamental similarity and differences between gap and dgap?
ADVERTISEMENT