Richelle Ng is the owner of Ring Marketing. She is considering marketing a new product that will cost $45,000. If Richelle decides to market the product and the product is successful, Ring Marketing will have revenues of $80,000. If the product does not succeed, the company will only have revenues of $33,000. Richelle estimates that there is a 0.52 probability that the product will succeed. Richelle can also decide to conduct a test market for $2,400 before deciding to go to the full market. The probability that the test market will be positive is estimated at 75%. If the test market is positive, Richelle feels the chance of product success is 90%. If the test market is negative, Richelle feels the chance of product success at only 15%.

Richelle Ng is the owner of Ring Marketing. She is considering marketing a new product that will cost $45,000. If Richelle decides to market the product and the product is successful, Ring Marketing will have revenues of $80,000. If the product does not succeed, the company will only have revenues of $33,000. Richelle estimates that there is a 0.52 probability that the product will succeed. Richelle can also decide to conduct a test market for $2,400 before deciding to go to the full market. The probability that the test market will be positive is estimated at 75%. If the test market is positive, Richelle feels the chance of product success is 90%. If the test market is negative, Richelle feels the chance of product success at only 15%.

Holt Mcdougal Larson Pre-algebra: Student Edition 2012

1st Edition

ISBN:9780547587776

Author:HOLT MCDOUGAL

Publisher:HOLT MCDOUGAL

Chapter11: Data Analysis And Probability

Section11.8: Probabilities Of Disjoint And Overlapping Events

Problem 2C

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