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A company is planning to introduce a new line of products. The level of the...

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Accounting

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A company is planning to introduce a new line of products. The level of the marketing campaign can be gradual or concentrated. The payoff will depend on the level of demand which can be high or low. The payoff table (in $) is as follows: Marketing campaign Event Prob Gradual Concentrated 0.35 75 45 Low demand High demand 0.65 100 150 Now, the CEO obtained a new market demand forecast report. The forecast can be an economic boom or a recession. In the past, when the demand was low, the forecast indicated recession 76% of the time. When the demand was high, the forecast indicated economic boom 79% of the time. The latest forecast indicates an economic boom a. Compute the revised probabilities using Baye's rule now that you know that the latest forecast indicates economic boom

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