Question

A state Department of Transportation (DOT) recently claimed that each of five bidders received equal consideration in the awarding of two road construction contracts and that, in fact, the two contract recipients were randomly selected from among the five bidders. Three of the bidders were large construction conglomerates and two were small specialty contractors. Suppose that both contracts were awarded to large construction conglomerates.

a. What is the probability of this event occurring if, in fact, the DOT's claim is true?
b.Is the probability computed in part an inconsistent with the DOT's claim that the selection was random?

Answer 1

(a) the probability of these events occurring if the DOT's claim is true is given by;

probability=number of required outcome/number of possible outcome.

therefore the probability is given as
`(2)/(5) or =0.4`.

(b) No the probability computed can be consistent with the DOT's claim that the selection was random because since it is a random probability they all have equal chances of being selected.

Explanation:

number of required outcome: this is the number that is being targeted or selected.

number of possible outcome: this is the total number of outcome that is possible from the given sample or population.