The editor of a textbook publishing company is trying to decide whether to publish a proposed business statistics textbook. Information on previous textbooks published indicate that 10% are huge successes, 20% are modest successes, 50% break even, and 20% are losers. However, before a publishing decision is made, the book will be reviewed. In the past, 99% of the huge successes received favorable reviews, 60% of the moderate successes received favorable reviews, 40% of the break-even books received favorable reviews, and 20%,of the losers received favorable reviews. 1. 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? The probability that if the proposed textbook receives a favorable review, the book will be a huge success? Modest success? Break-Even? Loser? 2. What proportion of textbooks recieve favorable reviews?
The editor of a textbook publishing company is trying to decide whether to publish a proposed business statistics textbook. Information on previous textbooks published indicate that 10% are huge successes, 20% are modest successes, 50% break even, and 20% are losers. However, before a publishing decision is made, the book will be reviewed. In the past, 99% of the huge successes received favorable reviews, 60% of the moderate successes received favorable reviews, 40% of the break-even books received favorable reviews, and 20%,of the losers received favorable reviews.
1. 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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2. What proportion of textbooks recieve favorable reviews?
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