Use the Information Below to Answer the Following Question(s)

question 20

Multiple Choice

Use the information below to answer the following question(s)
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 unfavorable, what is the probability of low demand?

• A) 84%
• B) 90%
• C) 87%
• D) 80%

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Definitions:

Trial Balance

A bookkeeping report that lists the balances of all ledgers and accounts to check that debits equal credits in the double-entry accounting system.

Adjustments

Adjustments in accounting refer to entries made in journal accounts at the end of an accounting period to correct and allocate incomes and expenditures accurately.

Accounting System

A systematic process of recording, analyzing, summarizing, and reporting the financial transactions of a business or individual.

Adjusting Entries

Journal entries made at the end of an accounting period to update account balances to reflect accurate financial activity and balances.