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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?

Respuesta :

Answer:

26% probability that they win both contracts.

Step-by-step 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?

[tex]P = 0.4*0.65 = 0.26[/tex]

26% probability that they win both contracts.

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