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

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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) About Me  (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.
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Ed