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A software company surveyed managers to determine the probability that they would buy a new graphics package that includes three-dimensional graphics

Statistics Nov 18, 2020

A software company surveyed managers to determine the probability that they would buy a new graphics package that includes three-dimensional graphics. About 20% of office managers were certain that they would not buy the package, 70% claimed that they would buy, and the others were undecided. Of those who said that they would not buy the package, only 10% said that they were interested in upgrading their computer hardware. Of those interested in buying the graphics package, 40% were also interested in upgrading their computer hardware. Of the undecided, 20% were interested in upgrading their computer hardware.

 

Let denote the intention of not buying, the intention of buying, the undecided, and the intention of upgrading the computer hardware.

(a) Calculate the probability that a manager chosen at random will not upgrade the computer hardware (P(G)).

(b) Explain what is meant by the posterior probability of given GP(B|G).

(c) Construct a tree diagram and use it to calculate the following probabilities: P(G), P(B|G), P(B|G), P(C|G), P(C|G).

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