Question: Before making a final decision on the production plan to adopt, the bakery's manager decides to contact Professor Leung in the Math Department to conduct

 Before making a final decision on the production plan to adopt,the bakery's manager decides to contact Professor Leung in the Math Department

Before making a final decision on the production plan to adopt, the bakery's manager decides to contact Professor Leung in the Math Department to conduct a market research survey. The results of the survey will indicate either favourable or unfavourable market conditions for premium breads. In the past, when there was medium demand, Professor Leung's predictions were favourable 37% of the time. The professor's predictions have also been unfavourable given low demand 73% of the time, and favourable given high demand 66% of the time. Assume prior probabilities of 0.4 and 0.5 for low and medium demand respectively. a. Calculate posterior (revised) probabilities and enter them in the table below. Round answers to 3 decimal places; do not round intermediate results . Note: The first cell of the table represents P(Low | Favourable) The last cell of the table represents P(High | unfavourable) X The last cell Of the table represents r(Hign | Unfavourable) Low Medium High Favourable 18 Unfavourable b. Determine the marginal probabilities of favourable and unfavourable predictions. P(Favourable) = P(Unfavourable) =

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!