Question

Our original information was that the probability of High demand was .6. We collected the following new information about what happened to demand when there was an improving or not improving economy. Answer the below question. unanswered Calculate the probability for low demand and the improving economy (also called Joint Probability)? not_submitted Improving Economy Not improving economy Given high demand 0.61 Given Low demand 0.51 Submit Answer format: Number: Round to: 2 decimal places. Refer the table below. Our original information was that the probability of High demand was .6. We collected the following new information about what happened to demand when there was an improving or not improving economy. Answer the below question. unanswered not_submitted What is the probability of an improving economy? Improving Economy Not improving economy Given high demand 0.7 Given Low demand 0.64 Submit Answer format: Number: Round to: 2 decimal places.

Answer 1

1. P(High demand) = 0.6

P(low demand) = 1 - 0.6 = 0.4

P(improving economy | low demand) = 1 - 0.51 = 0.49

P(low demand and improving economy) = 0.4 x 0.49

= 0.196

2. P(High demand) = 0.6

P(low demand) = 1 - 0.6 = 0.4

P(improving economy | high demand) = 0.7

P(improving economy | low demand) = 1 - 0.64 = 0.36

P(improving economy) = P(low demand and improving economy) + P(high demand and improving economy)

= 0.6x0.7 + 0.4x0.36

= 0.564