A firm wants to launch a new luxury product only if demand for the product is strong. The probability that demand is strong is estimated to be .6. With a perfect market survey, what is the probability that the test will show that demand is strong?
A) .6
B) .4
C) .24
D) .5
E).2

Question

Quizplus · Accepted Answer

If the market survey is perfect, it will accurately reflect the true demand. Since the probability of strong demand is estimated to be .6, a perfect survey would also show a .6 probability of strong demand.

A Firm Wants to Launch a New Luxury Product Only