# Question: Before marketing new products nationally companies often test them on

Before marketing new products nationally, companies often test them on samples of potential customers. Such tests have a known reliability. For a particular product type, a test will indicate success of the product 75% of the time if the product is indeed successful and 15% of the time when the product is not successful.

From past experience with similar products, a company knows that a new product has a 0.60 chance of success on the national market. If the test indicates that the product will be successful, what is the probability that it really will be successful?

From past experience with similar products, a company knows that a new product has a 0.60 chance of success on the national market. If the test indicates that the product will be successful, what is the probability that it really will be successful?

## Answer to relevant Questions

A die is tossed twice and the two outcomes are noted. Draw the Venn diagram of the sample space and indicate the event "the second toss is greater than the first." Calculate the probability of the event. Two stocks A and B are known to be related in that both are in the same industry. The probability that stock A will go up in price tomorrow is 0.20, and the probability that both stocks A and B will go up tomorrow is 0.12. ...A quality control engineer knows that 10% of the microprocessor chips produced by a machine are defective. Out of a large shipment, five chips are chosen at random. What is the probability that none of them is defective? ...The probability that a new product will be successful if a competitor does not come up with a similar product is 0.67. The probability that the new product will be successful in the presence of a competitor's new product is ...The daily exchange rate of one dollar in euros during the first three months of 2007 can be inferred to have the following distribution. X P(x) 0.73 ... 0.05 0.74 ... 0.10 0.75 ... 0.25 0.76 ... 0.40 0.77 ... 0.15 0.78 ...Post your question