A company is considering producing some new Gameboy electronic games.Based on past records, management believes that there is a 70 percent chance that each of these will be successful and a 30 percent chance of failure.Market research may be used to revise these probabilities.In the past, the successful products were predicted to be successful based on market research 90 percent of the time.However, for products that failed, the market research predicted these would be successes 20 percent of the time.If market research is performed for a new product, what is the probability that the results indicate an unsuccessful market for the product and the product is actually successful?
A)0.63
B)0.06
C)0.07
D)0.24

Question

Quizplus · Accepted Answer

The probability that the market research indicates an unsuccessful market for a successful product is calculated using Bayes' theorem. The probability of a successful product being predicted as unsuccessful is 1 - 0.9 = 0.1. Therefore, the probability is 0.7 (probability of success) * 0.1 = 0.07.

A Company Is Considering Producing Some New Gameboy Electronic Games