Computing probabilities, A retail grocer has decided to

Computing probabilities

Reference no: EM13104088

A retail grocer has decided to market organic "health foods" and will purchase a new line of products from each of two suppliers. Unknown to the grocer, the two suppliers are in financial distress. Past experience has shown that, for firms with similar credit histories, the probability that bankruptcy proceedings will be initiated within one year is .7. We are interested in observing the financial progress of the two suppliers over the next year. For this experiment, the simple events and their associated probabilities are as follows (B1: Supplier 1 declares bankruptcy; N1: Supplier 1 does not declare bankruptcy, etc.): Simple Events are (B1, B2), (B1, N2), (N1, B2), (N1, N2) with associated probabilities of .49, .21, .21, and .09 respectively.

Compute the probabilities of each of the following events:

D: {Neither supplier declares bankruptcy}
F: {At least one supplier declares bankruptcy during the next year}

I have not been able to figure this problem out. Can you show how do work this problem out? Thanks.

Reference no: EM13104088

Questions Cloud

Describe tradeoffs between lifecycle and first cost analyses : Create the 1,050- to 1,400-word paper in which you describe tradeoffs between lifecycle and first cost analyses in terms of risk and cost.

Standard deviation of the height distribution : The distribution of the height of students in a large class is roughly bell-shaped. The average height is 68 inches, and approximately 95% of the heights are between 62 and 74 inches. Thus, the standard deviation of the height distribution is appr..

Implications of reserved parking for certain members : What are the motivational implications of organizations having reserved parking for certain members? What are the pros and cons of reserved parking from an expectancy theory perspective?

Confidence interval for the mean family dental expenditures : Determine the point estimate and 95% confidence interval for the mean family dental expenses of all employees of the company.

Computing probabilities : A retail grocer has decided to market organic "health foods" and will purchase a new line of products from each of two suppliers. Unknown to the grocer

Observed and expected number of events : Suppose we want to compare the observed and expected number of events among the group 250 treatments.

Calculate the total cost for the layout : An initial solution has been given to the following workcenter layout problem. Given the fl ows described and a cost of $2.00 per unit per foot, compute the total cost for the layout.

How common sense workplace has been replaced by litigation : Describe why the student does or does not agree with this statement: "Common sense and compassion in workplace has been replaced by litigation."

Probabilities and simple events : When assigning probabilities of two simple events, can we assume that each event is always equally likely to occur and, thus assign .5 to each event?

User Account

All Pages