Question

An aerospace company has submitted bids on two separate federal government defense contracts. The company president believes that there is a 40% probability of winning the first contract. If they win the first contract, the probability of winning the second is 65%. However, if they lose the first contract, the president thinks that the probability of winning the second contract decreases to 49%.

What is the probability that they win both contracts?

Answer 1

26% probability that they win both contracts.

Explanation:

These following probabilities are important to solve this question:

0.4 = 40% probability of winning the first contract.

0.65 = 65% probability of winning the second contract if the first contract is won.

What is the probability that they win both contracts?

`P = 0.4*0.65 = 0.26`

26% probability that they win both contracts.