Wing Foot is a shoe franchise commonly found in shopping centers across the United States. Wing Foot knows that its stores will not show a profit unless they gross over $940,000 per year. Let A be the event that a new Wing Foot store grosses over $940,000 its first year. Let B be the event that a store grosses over $940,000 its second year. Wing Foot has an administrative policy of closing a new store if it does not show a profit in either of the first two years. Assume that the accounting office at Wing Foot provided the following information: (a)56% of all Wing Foot stores show a profit the first year; (b)74% of all Wing Foot store show a profit the second year (this includes stores that did not show a profit the first year); however, (C)82% of Wing Foot stores that showed a profit the first year also showed a profit the second year. Compute P(B| A), if P(A) = 0.56 and P(B|not A) = 0.38.
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.
Wing Foot is a shoe franchise commonly found in shopping centers across the United States. Wing Foot knows that its stores will not show a profit unless they gross over $940,000 per year.
Let A be the
Let B be the event that a store grosses over $940,000 its second year.
Wing Foot has an administrative policy of closing a new store if it does not show a profit in either of the first two years.
Assume that the accounting office at Wing Foot provided the following information: (a)56% of all Wing Foot stores show a profit the first year; (b)74% of all Wing Foot store show a profit the second year (this includes stores that did not show a profit the first year); however, (C)82% of Wing Foot stores that showed a profit the first year also showed a profit the second year.
Compute P(B| A), if P(A) = 0.56 and P(B|not A) = 0.38.
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