Two different record companies X and Y both produce classica

Two different record companies, X and Y, both produce classical

music recordings. Label X is a “budget” label, and 5% of X’s new records

exhibit a significant degree of warpage. Label Y is manufactured under more

stringent quality control conditions (and hence sold at a higher price) than X, so

only 2% of its new pressings are warped. If you purchase one label X record

and one label Y record from a record seller, what is the probability that both

records are warped?

As they are independent, we just multiply their probabilities to get the probability that they happen at the same time.

Thus,

P(both warped) = P(x is warped) P(y is warped) = 0.05*0.02 = 0.001 or 0.1% [ANSWER]