Use the information below to answer the following questions)
Misty Inc. launches a new range of perfumes for men and women. The probability of high consumer demand for the product is 0.6 and low consumer demand is 0.4. The probability of a favorable survey response given high consumer demand is 0.9 and the probability of a favorable survey response given low consumer demand is 0.2.
-What is the likelihood for high demand knowing that the market report is favorable?
A) 84%
B) 90%
C) 87%
D) 80%

Question

Quizplus · Accepted Answer

P(High demand | Favorable survey response) = P(High demand and Favorable survey response) / P(Favorable survey response)= P(High demand) * P(Favorable survey response | High demand) / (P(High demand) * P(Favorable survey response | High demand) + P(Low demand) * P(Favorable survey response | Low demand))= 0.6 * 0.9 / (0.6 * 0.9 + 0.4 * 0.2)= 0.54 / 0.68= 0.875= 87.5%

Use the Information Below to Answer the Following Questions)