Assignment:
An admissions committee must select students for an MBA program. Past data show that 70% of students complete (C) the program. It is also known that 50% of the graduating students scored above 500 (A) on the GMAT test. While 20% of the dropouts (D) scored that well. Consider a new MBA student.
A) What is the prior probabilty that she will complete the degree
B) Given that she scores 575 on the GMAT test, what is posterior probability that she will complete her MBA
C) Given that she scores 450 on the test, what is the posterior probability that she will graduate?
Provide complete and step by step solution for the question and show calculations and use formulas.