An aerospace company has submitted bids on two separate federal government defen

Question

An aerospace company has submitted bids on two separate federal government defense contracts. The company president believes that there is a 36% probability of winning the first contract. If they win the first contract, the probability of winning the second is 70%. However, if they lose the first contract, the president thinks that the probability of winning the second contract decreases to 48%.

A. What is the probability that they win both contracts?

Probability =

B. What is the probability that they lose both contracts?

Probability =

C. What is the probability that they win only one contract?

Probability =

Explanation / Answer

A.The probability that they win both contracts is: 0.43*0.69=0.2967

B.The probability that they lose both contracts is:

(1-0.43)*(1-0.47))

=0.3021

C.The probability that they win only one contract:

0.43*(1-0.69)+(1-0.43)*0.47

=0.4012

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