1. A company markets two products (Product A and Product B) through mail order. The company will market them in sequence with the first mail order offer for product A. It feels that there is a 30% chance that any customer will purchase product A. Product B is offered some months later. It is felt, for product B, that there is a 30% chance of selling product B to a customer if the customer purchased product A and a 5% chance of selling product B to a customer who did not purchase product A.
What is the probability of not selling product B to a particular customer?
2. A quality control department finds that it accepted only 5% of all bad items and it rejected only 1% of good items. A supplier has just delivered a shipment of a certain item. Past records show that only 90% of the parts of that supplier are good. If the department accepts an item, what is the probability that the item is bad?
1. What is the probability of not selling product B to a particular customer?
P(A) = 0.30, P(A') = 1 - 0.3 = 0.7
Probability of ...
This response applies the concepts of marginal and joint probability to different business scenarios.