Use Bayes's Rule to Find the Indicated Probability

question 112

Multiple Choice

Use Bayes's rule to find the indicated probability.
-Two stores sell a certain product. Store A has 40% of the sales, 3% of which are of defective items, and store B has 60% of the sales, 5% of which are of defective items. The difference in defective
Rates is due to different levels of pre-sale checking of the product. A person receives a defective Item of this product as a gift. What is the probability it came from store B?

• A)0.75
• B)0.3
• C)0.2857
• D)0.7143

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Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period.