Reference no: EM13216095

The editor of a textbook company is trying to decide whether to publish a proposed business statistics textbook. Information on previous textbooks published indicates that 10% are huge successes, 20% are modest successes, 40% break even, and 30% are losers. Before publishing decision is made that book will be reviewed . 99% is huge successes received favorable reviews, 70% of the moderate successes received favorable reviews, 40% of the break-even books received favorable reviews, and 20% of the losers received favorable reviews.

a) If the proposal textbook receives favorable reviews, how should the editor revise the probabilities of the various outcomes to take this information into account?