Mindtap Business Analytics, 1 Term (6 Months) Printed Access Card For Camm/cochran/fry/ohlmann/anderson/sweeney/williams'  Essentials Of Business Analytics, 2nd
Mindtap Business Analytics, 1 Term (6 Months) Printed Access Card For Camm/cochran/fry/ohlmann/anderson/sweeney/williams' Essentials Of Business Analytics, 2nd
2nd Edition
ISBN: 9781305861794
Author: Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher: Cengage Learning
bartleby

Concept explainers

bartleby

Videos

Question
Book Icon
Chapter 5, Problem 10P

a.

To determine

Check whether A1and A2 are mutually exclusive or not.

 Explain the answer.

a.

Expert Solution
Check Mark

Answer to Problem 10P

Events A1and A2 are mutually exclusive.

Explanation of Solution

Calculation:

The prior probabilities for the events A1and A2 arePA1=0.40and PA2=0.60.

The values of PA1A2=0,PB|A1=0.20,and PB|A2=0.05 .

Mutually exclusive events:

Two or more events are said to be mutually exclusive if they have no element in common. For mutually exclusive events, PAB=0.

Here, PA1A2=0. Therefore events A1and A2 are mutually exclusive.

b.

To determine

Compute the probability valuesPA1BandPA2B.

b.

Expert Solution
Check Mark

Answer to Problem 10P

The probabilities are:

PA1B=0.08¯,PA2B=0.03¯.

Explanation of Solution

Calculation:

The Multiplication Rule:

For any two events A and B, the multiplication rule states that PAB=PB|A×PA.

Required probabilities are:

PA1B=PB|A1×PA1PA2B=PB|A2×PA2

Here, PA1=0.40, PA2=0.60,PB|A1=0.20and PB|A2=0.05.

Substitute these values in the above formula.

Therefore,

PA1B=0.20×0.40=0.08

Thus, PA1B=0.08.

Therefore,

PA2B=0.05×0.60=0.03

Thus, PA2B=0.03.

c.

To determine

Compute the probability valuePB.

c.

Expert Solution
Check Mark

Answer to Problem 10P

The probability value is, PB=0.11¯.

Explanation of Solution

Calculation:

The probability of the event can be obtained as follows:

PB=PA1B+PA2B.

From part (b), PA1B=0.08and PA2B=0.03.

Substitute these values in the above formula.

Therefore,

PB=0.08+0.03=0.11

Thus, PB=0.11¯.

d.

To determine

Compute PA1|Band PA2|B using Bayes’ theorem.

d.

Expert Solution
Check Mark

Answer to Problem 10P

The probability values are:

PA1|B=0.7273¯,PA2|B=0.2727¯.

Explanation of Solution

Calculation:

Bayes Theorem (Two-Event Case):

PA1|B=PA1×PB|A1PA1×PB|A1+PA2×PB|A2=PA1×PB|A1PBPA2|B=PA2×PB|A2PA1×PB|A1+PA2×PB|A2=PA2×PB|A2PB

From part (b), PA1B=0.08and PA2B=0.03.

From part (c), PB=0.11.

Substitute these values in the Bayes’ theorem.

Therefore,

PA1|B=0.080.11=0.72727=0.7373

Thus, PA1|B=0.7273¯.

PA2|B=0.030.11=0.2727

Thus, PA2|B=0.2727¯.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
A college wants to estimate what students typically spend on textbooks. A report fromthe college bookstore observes that textbooks range in price from $22 to $186. Toobtain a 95% confidence level for a confidence interval estimate to plus or minus $10,how many students should the college survey? (We may estimate the populationstandard deviation as (range) ÷ 4.)
In a study of how students give directions, forty volunteers were given the task ofexplaining to another person how to reach a destination. Researchers measured thefollowing five aspects of the subjects’ direction-giving behavior:• whether a map was available or if directions were given from memory without a map,• the gender of the direction-giver,• the distances given as part of the directions,• the number of times directions such as “north” or “left” were used,• the frequency of errors in directions. Identify each of the variables in this study, and whether each is quantitative orqualitative. For each quantitative variable, state whether it is discrete or continuous. Was this an observational study or an experimental study? Explain your answer.
explain the difference between the confident interval and the confident level.  provide an example to show how to correctly interpret a confidence interval.

Chapter 5 Solutions

Mindtap Business Analytics, 1 Term (6 Months) Printed Access Card For Camm/cochran/fry/ohlmann/anderson/sweeney/williams' Essentials Of Business Analytics, 2nd

Knowledge Booster
Background pattern image
Statistics
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:9781133382119
Author:Swokowski
Publisher:Cengage
Text book image
College Algebra
Algebra
ISBN:9781337282291
Author:Ron Larson
Publisher:Cengage Learning
Text book image
College Algebra (MindTap Course List)
Algebra
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:Cengage Learning
Text book image
College Algebra
Algebra
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning
Text book image
Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Bayes' Theorem 1: Introduction and conditional probability; Author: Dr Nic's Maths and Stats;https://www.youtube.com/watch?v=lQVkXfJ-rpU;License: Standard YouTube License, CC-BY
What is Conditional Probability | Bayes Theorem | Conditional Probability Examples & Problems; Author: ACADGILD;https://www.youtube.com/watch?v=MxOny_1y2Q4;License: Standard YouTube License, CC-BY
Bayes' Theorem of Probability With Tree Diagrams & Venn Diagrams; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=OByl4RJxnKA;License: Standard YouTube License, CC-BY
Bayes' Theorem - The Simplest Case; Author: Dr. Trefor Bazett;https://www.youtube.com/watch?v=XQoLVl31ZfQ;License: Standard Youtube License