A Worldwide Personal Products Manufacturer Is Working on a New

question 31

Short Answer

A worldwide personal products manufacturer is working on a new hair care product. In the past, 85 percent of new hair care products introduced by this company have become successful (15 percent have failed). Obviously, the marketing research department plays a large role in the introduction of any new product. Historically, 85 percent of the successful products have a favorable rating from marketing research studies and 20 percent of the unsuccessful products have favorable ratings. For the new hair care product, the marketing unit has issued a favorable rating. What is the probability that the new product will be successful?

---

Definitions:

Drawee

The party in a draft or bill of exchange who is directed to pay, typically a bank.

Internal Control

Procedures and policies implemented by a company to safeguard its assets, ensure financial accuracy, and promote operational efficiency.

Canceled Checks

Checks that have been paid and processed by a bank, no longer negotiable, serving as proof of payment.

Negotiable

Capable of being transferred or exchanged with ease, often referring to financial instruments.