F.B. Corporation buys electrical controllers from a Japanese supplier.  The company’s treasurer feels that there is probability 0.4 that the dollar will fall in value against the Japanese yen in the next month.  The treasurer also believes that if the dollar falls, there is probability 0.8 that the supplier will demand renegotiation of the contract.  Suppose the treasurer also feels that if the dollar does not fall, there is probability 0.1 that the Japanese supplier will demand that the contract be renegotiation 

Let F = the event that the dollar will fall against the yen.

Let R = the event that the supplier will demand renegotiation of the contract

1. Use a probability statement to describe all the events above.

2. Create a tree diagram, labeling the branches with the appropriate values.

3. Find the probability that the dollar fell against the yen, given that the supplier demanded renegotionation of the contract.