Reference no: EM132854271

Wing Foot is a shoe franchise commonly found in shopping centers across the United States. Wing Foot knows that its stores will not show a profit unless they gross over $940,000 per year.

Let A be the event that a new Wing Foot store grosses over $940,000 its first year.

Let B be the event that a store grosses over $940,000 its second year.

Wing Foot has an administrative policy of closing a new store if it does not show a profit in either of the first two years.

Assume that the accounting office at Wing Foot provided the following information: (a)56% of all Wing Foot stores show a profit the first year; (b)74% of all Wing Foot store show a profit the second year (this includes stores that did not show a profit the first year); however, (C)82% of Wing Foot stores that showed a profit the first year also showed a profit the second year.

Compute P(B| A), if P(A) = 0.56 and P(B|not A) = 0.38.