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Mathematics, 05.10.2019 09:01 dthompson365
The editor of a textbook publishing company is trying to decide whether to publish a proposed business statistics textbook. information on previous textbooks published indicates that 8% are huge successes, 12% are modest successes, 40% break even, and 40% are losers. however, before a publishing decision is made, the book will be reviewed. in the past, 90% of the huge successes received favorable reviews, 70% of the moderate successes received favorable reviews, and 40% of the break-even books received favorable reviews, and 20% of the losers received favorable reviews.
(a) what proportion of textbooks receive favorable reviews?
(b) 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?
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