Darius is offered a choice between two gambles on a fair coin flip: (1) pay $100, win $110 on either heads or tails. (2) pay $10
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Answer:
Probability that the company wins project A or project B is 0.50.
Step-by-step explanation:
We are given that a company is bidding on two projects, A and B. The probability that the company wins project A is 0.40 and the probability that the company wins project B is 0.25.
Also, Winning project A and winning project B are independent events.
Let the Probability of winning project A = P(A) = 0.40
Probability of winning project B = P(B) = 0.25
<u>Now, as we know that ;</u>
Probability that the company wins project A or project B =
So, we have to find the value of Probability of winning project A and B, i.e;
<em>Since, we are given that Winning project A and winning project B are independent events which means when this condition is given then;</em>
= 0.40 0.25 = 0.10
Now, Probability that the company wins project A or project B is given by;
= 0.40 + 0.25 - 0.10
= 0.65 - 0.10 = 0.55
Hence, probability that the company wins project A or project B is 0.50.