Restaurant built in Edmonton has 80% chance of 1 year. If built in St Albert survival falls to 65%.Estimated chance St Albert is available is 60% and Edm 40%.
A)Probability the restaurant will survive 1 year
B) be built in Edm and last 1 yr
C) be built in St Albert , given that it survived 1 yr
D) NOT survive its first year, given that it is built in Edm.
Need the formula and ansers to each
how to prepare a tabular anaylsis of the transactions,using the following column headings:cash,accouts receivable,supplies,equipment,accounts payable,and capital?
To calculate the probabilities in this scenario, we can make use of conditional probability and the multiplication rule. Let's go through each question:
A) Probability the restaurant will survive 1 year:
To calculate this probability, we need to consider the chances of survival in both Edmonton and St. Albert, taking into account the estimated availability of each location.
P(survival) = P(survival|Edmonton) * P(Edmonton) + P(survival|St. Albert) * P(St. Albert)
= 0.80 * 0.40 + 0.65 * 0.60
= 0.32 + 0.39
= 0.71
Therefore, the probability the restaurant will survive 1 year is 0.71 or 71%.
B) Probability to be built in Edmonton and last 1 year:
To calculate this probability, we need to consider the chance of being built in Edmonton and the survival rate in Edmonton.
P(Edmonton and survival) = P(survival|Edmonton) * P(Edmonton)
= 0.80 * 0.40
= 0.32
Therefore, the probability the restaurant will be built in Edmonton and last 1 year is 0.32 or 32%.
C) Probability to be built in St. Albert, given that it survived 1 year:
To calculate this probability, we need to use Bayes' theorem.
P(St. Albert | survival) = P(survival | St. Albert) * P(St. Albert) / P(survival)
= 0.65 * 0.60 / 0.71
= 0.62
Therefore, the probability the restaurant will be built in St. Albert, given that it survived 1 year, is 0.62 or 62%.
D) Probability to NOT survive its first year, given that it is built in Edmonton:
To calculate this probability, we need to use the complement rule.
P(not survival | Edmonton) = 1 - P(survival | Edmonton)
= 1 - 0.80
= 0.20
Therefore, the probability the restaurant will NOT survive its first year, given that it is built in Edmonton, is 0.20 or 20%.
For the second part of your question regarding preparing a tabular analysis of transactions using the provided column headings, you can arrange the transactions in rows with each column representing a specific account:
| Cash | Accounts Receivable | Supplies | Equipment | Accounts Payable | Capital |
|—————————————————————————————————————————————————————————————————————|
| | | | | | |
| | | | | | |
| | | | | | |
Fill in the corresponding details for each transaction in the appropriate column and row. The specific information for each account should be entered under the respective heading. This tabular analysis will help organize and track the various financial transactions of the business.