The editor of a textbook publishing company is trying to decide whether to publish a proposed business statistics textbook. Information on previous textbooks published indicates that 10% are huge successes, 20% are modest successes, 40% break even and 30% are losers. However, before a publishing decision is made, the book will be reviewed. In the past, 99% of the huge successes received favorable reviews, 70% of the moderate successes received favorable reviews, 40% of the break even books received favorable reviews, and 20% of the losers received favorable reviews.
i) If the proposed textbook receives a favorable review, how should the editor revise the probabilities of the various outcomes to take this information into account?
ii) What proportion of textbooks receives favorable reviews?
would really like step by step detail to understand how to calculate the probabilities to better understand these relations