Discuss the below:
Q1. A company markets two products (Product A and Product B) through mail order. The company will market them in sequence with the first mail order offer for product A. It feels that there is a 30% chance that any customer will purchase product A. Product B is offered some months later. It is felt, for product B, that there is a 30% chance of selling product B to a customer if the customer purchased product A and a 5% chance of selling product B to a customer who did not purchase product A.
What is the probability of not selling product B to a particular customer?
Q2. A quality control department finds that it accepted only 5% of all bad items and it rejected only 1% of good items. A supplier has just delivered a shipment of a certain item. Past records show that only 90% of the parts of that supplier are good. If the department accepts an item, what is the probability that the item is bad?