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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 pro fit 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 pro fit in either of the fi rst 2 years. The accounting of fice at Wing Foot provided the following information: 65% of all Wing Foot stores show a pro fit the fi rst year; 71% of all Wing Foot stores show a pro fit the second year (this includes stores that did not show a profi t the fi rst year); however, 87% of Wing Foot stores that showed a pro fit the fi rst year also showed a pro fit the second year. Compute the following:
(a) P (A)
(b) P (B)
(c) P (B | A)
(d) P (A and B)
(e) P (A or B)
(f) What is the probability that a new Wing Foot store will not be closed after 2 years? What is the probability that a new Wing Foot store will be closed after 2 years? |
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