A market research firms conducts studies regarding the success of new products.The company is not always perfect in predicting the success.Suppose that there is a 50% chance that any new product would be successful (and a 50% chance that it would fail).In the past, for all new products that ultimately were successful, 80% were predicted to be successful (and the other 20% were inaccurately predicted to be failures).Also, for all new products that were ultimately failures, 70% were predicted to be failures (and the other 30% were inaccurately predicted to be successes).What is the a priori probability that a new product would be a success?
A)0.50
B)0.80
C)0.70
D)0.60
E)0.95

Question

Quizplus · Accepted Answer

The a priori probability that a new product would be a success is given as 50%, which means before considering any specific information about the product's predicted success or failure, there is a 50% chance of success.

A Market Research Firms Conducts Studies Regarding the Success of New