SOLUTION: Consider that overall only 30% of new restaurants succeed in the first year of business. However, if a restaurant is opened in a high population density area the probability of su

Question 805220: Consider that overall only 30% of new restaurants succeed in the first year of business. However, if a restaurant is opened in a high population density area the probability of success is 60%. If 40% of the new restaurants are in high population density areas and 60% are in low population density areas what is the probability that a new restaurant opened in a low population density area will succeed?
Answer by edjones(8007) (Show Source): You can put this solution on YOUR website!
Let x = the probability that a new restaurant opened in a low population density area will succeed.
%SLDAR = Percent successful low density area restaurants
%SHDAR = Percent successful high density area restaurants
%SLPDAR + %SHDAR = Overall successful new restaurants
.6x+(.4*.6)=.3
.6x+.24=.3
.6x=.06
x=0.1=10% the probability that a new restaurant opened in a low population density area will succeed.
.
Ed
RELATED QUESTIONS
Formulas: nCr = n! / r!(n-r)! Order not Imp..... nPr = n! / (n-r)! Order is... (answered by edjones)

4. Claire is considering investing in a new business. In the first year, there is a... (answered by Boreal)

The health department of a city routinely conducts two independent inspections of each... (answered by ikleyn)

R.H. Bruskin Associates Market Research found that 30% of Americans do not think having a (answered by Fombitz)

A stock analyst is studying the sales of three restaurant chains. Altogether, the... (answered by ankor@dixie-net.com)

A lawyer invested a certain amount of money in a restaurant business, expecting the... (answered by ikleyn,MathTherapy,greenestamps)

I would love to know if I did this problem correctly: The XYZ Corporation plans to... (answered by solver91311)

4. Claire is considering investing in a new business. In the first year, there is a... (answered by ikleyn)