A Market Research Firms Conducts Studies Regarding the Success of New

Multiple Choice

A market research firms conducts studies regarding the success of new products.The company is not always perfect in predicting the success.Suppose that there is a 50% chance that any new product would be successful (and a 50% chance that it would fail) .In the past, for all new products that ultimately were successful, 80% were predicted to be successful (and the other 20% were inaccurately predicted to be failures) .Also, for all new products that were ultimately failures, 70% were predicted to be failures (and the other 30% were inaccurately predicted to be successes) .For any randomly selected new product, what is the probability that the market research firm would predict that it would be a success?

A) 0.80
B) 0.50
C) 0.45
D) 0.55
E) 0.95