Question

Wing Foot is a shoe franchise commonly found in shopping centers across the United States. Wing Foot knows that its stores will not show a profit unless they gross over $940,000 per year. Let A be the event that a new Wing Foot store grosses over $940,000 its first year. Let B be the event that a store grosses over $940,00 its second year. Wing Foot has an administrative policy of closing a new store if it does not show a profit in either of the first 2 years. The accounting office at Wing Foot provided the following information: 69% of all Wing Foot stores show a profit the first year

Answer 1

69% of all Wing Foot stores show a profit the second year (this includes stores that did not show a profit the first year); however, 83% of Wing Foot stores that showed a profit the first year also showed a profit the second year. Compute the following. (Enter your answers to four decimal places.)

Answer 2

(a) P(A)

0.69

Correct: Your answer is correct.


(b) P(B)

0.69

Correct: Your answer is correct.


(c) P(B | A)

0.0069

Incorrect: Your answer is incorrect.


(d) P(A and B)

0.4761

Incorrect: Your answer is incorrect.


(e) P(A or B)

0.4278

Incorrect: Your answer is incorrect.


(f) What is the probability that a new Wing Foot store will not be closed after 2 years?

0.5727

Incorrect: Your answer is incorrect.


What is the probability that a new Wing Foot store will be closed after 2 years?

0.4273

Incorrect: Your answer is incorrect.

Answer 3

for part c)
P(B | A) means : the probability that profit also occurs in second year, "given that" the profit has occured in first year.

Answer 4

read below sentence from the question :
` 83% of Wing Foot stores that showed a profit the first year also showed a profit the second year`