Two professors at a nearby university want to co-author a new textbook in either economics or statistics. They feel that if they write an economics book they have a 50% chance of placing it with a major publisher where it should ultimately sell about 40,000 copies. If they can't get a major publisher to take it, then they feel they have an 80% chance of placing it with a smaller publisher, with sales of 30,000 copies. On the other hand if they write a statistics book, they feel they have a 40% chance of placing it with a major publisher, and it should result in ultimate sales of about 50,000 copies. If they can't get a major publisher to take it, they feel they have a 50% chance of placing it with a smaller publisher, with ultimate sales of 35,000 copies.
What is the probability that the statistics book would wind up being placed with a smaller publisher?
A) 0.6
B) 0.5
C) 0.4
D) 0.3
E) 0

Question

Quizplus · Accepted Answer

The probability that the statistics book would wind up being placed with a smaller publisher is calculated by first determining the probability that it does not get placed with a major publisher (1 - 0.4 = 0.6) and then multiplying that by the probability of being placed with a smaller publisher given that it wasn't placed with a major one (0.6 * 0.5 = 0.3).

Two Professors at a Nearby University Want to Co-Author a New