A particular shoe franchise 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 store grosses over $940,000 its first year. Let B be...


A particular shoe franchise knows that its stores will not show a profit unless they gross over $940,000 per year. LetA be the event that a new store grosses over $940,000 its first year. LetB be the event that a store grosses over $940,00 its second year. The franchise has an administrative policy of closing a new store if it does not show a profit ineither of the first 2 years. The accounting office at the franchise provided the following information: 69% ofall the franchise stores show a profit the first year; 77% ofall the franchise stores show a profit the second year (this includes stores that did not show a profit the first year); however, 83% of the franchise 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.)


(a)P(A)




(b)P(B)




(c)P(B |A)




(d)P(A and B)




(e)P(A or B)




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




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


Jun 07, 2022
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