Carmen a computer sales representative believes that the odd

Carmen, a computer sales representative, believes that the odds are 8 to 3 that she will clinch the sale of a minicomputer to a certain company. What is the (subjective) probability that Carmen will make the sale? (Round your answer to three decimal places.)

Solution

Question: Carmen, a computer sales representative, believes that the odds are 8 to 3 that she will clinch the sale

               of a minicomputer to a certain company. What is the (subjective) probability that Carmen will make

               the sale? (Round your answer to three decimal places.)

Answer: At first we undertsnad the the information given

              We are given odds 8 to 3 that she will clinch the sale, lets understand what does this means

              Odds in favour is ratio of Favorable case to Non favorable case, so saying odds 8 to 3 means

              numbers in favor m = 8 and numbers not in favors n = 3

              P(she will clinch the sale) = (Numbers in favor)/( numbers in favor + numbers not in favor)

              P(Carmen will clinch the sale) = 0.727 Answer