A Company Is Considering Producing Some New Gameboy Electronic Games

question 143

Multiple Choice

A company is considering producing some new Gameboy electronic games.Based on past records, management believes that there is a 70 percent chance that each of these will be successful, and a 30 percent chance of failure.Market research may be used to revise these probabilities.In the past, the successful products were predicted to be successful based on market research 90 percent of the time.However, for products that failed, the market research predicted these would be successes 20 percent of the time.If market research is performed for a new product, what is the probability that the product will be successful if the market research indicates a success?

• A)0.10
• B)0.90
• C)0.91
• D)0.63

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Definitions:

Wheat Crops

Cultivated plants of the genus Triticum, grown as a cereal grain and a staple food commodity worldwide.

Pricing Strategy

The method a business uses to price its products or services, taking into account factors like cost, competition, demand, and value to the customer.

Pure Monopoly

A market structure where a single company or entity has exclusive control over the production and sale of a particular product or service.

Competitive Market

An economic market in which numerous producers compete against each other to satisfy the wants and needs of a large number of consumers.