Use the Information Below to Answer the Following Questions)

question 33

Multiple Choice

Use the information below to answer the following questions)
Misty Inc. launches a new range of perfumes for men and women. The probability of high consumer demand for the product is 0.6 and low consumer demand is 0.4. The probability of a favorable survey response given high consumer demand is 0.9 and the probability of a favorable survey response given low consumer demand is 0.2.
-If the marketing report is u'favorable, what is the probability of low demand?

• A) 84%
• B) 90%
• C) 87%
• D) 80%

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Definitions:

Retail Inventory Method

A method used in accounting to estimate the value of a store's merchandise based on the retail price of the inventory.

Net Markup

The percentage increase on the cost price of a product to arrive at its selling price, accounting for profit.

Price Change

Refers to the fluctuation in the selling price of goods and services over time, which can impact the revenues, expenses, and ultimately the profits of a business.

Gross Profit Method

An inventory estimation technique used to calculate the cost of goods sold and ending inventory based on the gross profit margin.