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California Consulting, LLC is a consulting business operated by Dr. Matecki and one of his colleagues. In a typical year, California Consulting responds to 12 requests for proposals (RFPs) in hopes of obtaining business. Each RFP results in either a 'success' (California Consulting is awarded the contract) or a 'failure' (California Consulting does not win the business). Assume that the outcomes follow the binomial distribution with the probability of success equal to 0.4.
One particular RFP has been submitted for a large research project. I initially felt that there was a 50-50 chance of getting the project; however, the agency to which the bid was submitted as subsequently asked for additional information on the bid. Past experience indicates that on 80% of the successful bids and 35% of the unsuccessful bid, the agency requested additional information.
a. Compute the posterior probability that the bid will be successful given that a request for additional information has been received.
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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