#No2 please help me thanks ~ Consider an automobile manufacturer who is contempl
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Question
#No2 please help me thanks ~
Consider an automobile manufacturer who is contemplating the redesign of an existing model. The engineering and marketing groups have concurrently determined that there are three feasible redesign alternatives from which to choose. Due to an uncertain future budget, the following information is available: Design 1 will be chosen with probability 0.3 Design 2 will be chosen with probability 0.5 Design 3 will be chosen with probability 0.2 The marketing department has determined (through extensive forecasting studies) that: If design 1 is chosen, total revenues will increase with probability 0.8 If design 2 is chosen, total revenues will increase with probability 0.1 If design 3 is chosen, total revenues will increase with probability 0.4 Compute the probability that a redesign will increase revenues.Explanation / Answer
Probability of choosing design 1 = 0.3
probability that revenue will increase if this design is choosen = 0.8
Probability that this design will increase revenue = 0.24
Probability of choosing design 2 = 0.5
probability that revenue will increase if this design is choosen = 0.1
Probability that this design will increase revenue = 0.05
Probability of choosing design 3 = 0.2
probability that revenue will increase if this design is choosen = 0.4
Probability that this design will increase revenue = 0.08
Total probability of revenue increase if the above designes are choosen =
0.24 + 0.05 + 0.08 = 0.37
Answer = 0.37
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