Question

The URS construction company has submitted two​ bids, one to build a large hotel in London and the other to build a commercial office building in New York City. The company believes it has a​ 40% chance of winning the hotel bid and a​ 25% chance of winning the office building bid. The company also believes that winning the hotel bid is independent of winning the office building bid. What is the probability the company will win at least one​ contract?

Answer 1

Answer: Our required probability is 0.55.

Step-by-step explanation:

Since we have given that

Probability that chance of winning the hotel bid = 40%

Probability that no chance of winning the hotel bid = 100-40=60%

Probability that chance of winning the office building bid = 25%

Probability that no chance of winning the office building bid = 100-25 = 75%

So, Probability that the company will win at least one contract is given by

$0.4\times 0.75+0.6\times 0.25+0.4\times 0.25\\\\=0.55$

Hence, our required probability is 0.55.