A consulting firm submitted a bid for a large research project. The firm's management initially felt there was a 50/50 chance of getting the bid. However, the agency to which the bid was submitted subsequently requested additional information on the bid. Experience indicates that on 75% of the successful bids and 40% of the unsuccessful bids the agency requested additional information. If required, round your answers to two decimal places. a. What is the prior probability that the bid will be successful (i.e., prior to receiving the request for additional information)? b. What is the conditional probability of a request for additional information given that the bid will ultimately be successful? c. Compute a posterior probability that the bid will be successful given that a request for additional information has been received.
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
A consulting firm submitted a bid for a large research project. The firm's management initially felt there was a 50/50 chance of getting the bid. However, the agency to which the bid was submitted subsequently requested additional information on the bid. Experience indicates that on 75% of the successful bids and 40% of the unsuccessful bids the agency requested additional information. If required, round your answers to two decimal places.
a. What is the prior probability that the bid will be successful (i.e., prior to receiving the request for additional information)?
b. What is the conditional probability of a request for additional information given that the bid will ultimately be successful?
c. Compute a posterior probability that the bid will be successful given that a request for additional information has been received.
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