Use Bayes' Theorem to Find the Indicated Probability

question 160

Multiple Choice

Use Bayes' theorem to find the indicated probability.
-In the town of Maplewood a certain type of DVD player is sold at just two stores. 45% of the sales are from store A and 55% of the sales are from store B. 2.5% of the DVD players sold at store A are defective while 4.7% of the DVD players sold at store B are defective. If Kate receives one of these DVD players as a gift and finds that it is defective, what is the probability that it came from store A?

• A) 0.697
• B) 0.303
• C) 0.025
• D) 0.435

Understand the conditions under which a firm chooses to produce in the short run and long run.

Analyze the impact of factor prices on production costs and supply decisions.

Under the concept of competition and how market structures influence firm behavior.

Explore the economic behavior of firms in different market situations including competitive, monopolistic, and oligopolistic markets.

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Definitions:

Frequent Errors

Common mistakes or inaccuracies that occur regularly in a specific context.

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Various strategies or methods employed to enhance the effectiveness and clarity of written communication.

Application Message

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Solicited Application

A job application sent in response to an advertisement or invitation from the employer.