A consulting firm submitted a bid for a large research project.The firm's management initially felt they had a 50-50 chance ofgetting the project. However, the agency to which the bid wassubmitted subsequently requested additional information on the bid.Past experience indicates that for 78% of the successful bids and35% of the unsuccessful bids the agency requested additionalinformation.
a. What is the prior probability of the bidbeing successful (that is, prior to the request for additionalinformation) (to 1 decimal)?
b. What is the conditional probability of arequest for additional information given that the bid willultimately be successful (to 2 decimals)?
c. Compute the posterior probability that thebid will be successful given a request for additional information(to 2 decimals).
