An aerospace company has submitted bids on two separate fede

An aerospace company has submitted bids on two separate federal government defense contracts. The company president believes that there is a 43% probability of winning the first contract. If they win the first contract, the probability of winning the second is 69%. However, if they lose the first contract, the president thinks that the probability of winning the second contract decreases to 47%.

A. What is the probability that they win both contracts?

Probability = ?

B. What is the probability that they lose both contracts?

Probability = ?

C. What is the probability that they win only one contract?

Probability = ?

Solution

A.The probability that they win both contracts is: 0.43*0.69=0.2967

B.The probability that they lose both contracts is:

(1-0.43)*(1-0.47))

=0.3021

C.The probability that they win only one contract:

0.43*(1-0.69)+(1-0.43)*0.47

=0.4012