Question

As manager for a construction​ firm, you are in charge of bidding on two large contracts. You believe the probability you get contract​ #1 is 0.4. If you get contract​ #1, the probability you also get contract​ #2 will be 0.3​, and if you do not get​ #1, the probability you get​ #2 will be 0.5. Complete parts​ (a) through​ (c).

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Answer 1

Answer: a) Calculate the probability of getting both contracts:

The probability of getting both contracts is given by P(Contract 1 and Contract 2) = P(Contract 1) * P(Contract 2|Contract 1) = 0.4 * 0.3 = 0.12

b) Calculate the probability of getting either contract:

The probability of getting either contract is given by P(Contract 1 or Contract 2) = P(Contract 1) + P(Contract 2) - P(Contract 1 and Contract 2) = 0.4 + 0.5 - 0.12 = 0.78

c) Calculate the probability of not getting either contract:

The probability of not getting either contract is given by P(Neither Contract) = 1 - P(Contract 1 or Contract 2) = 1 - 0.78 = 0.22.

So, there is a 22% chance that the construction firm will not get either contract.

Explanation: