Question

Anne is choosing a contractor. She has narrowed down her selection to two companies and will base her decision on the likelihood that the job is done on time and on budget. She uses online reviews to estimate the probabilities.

Answer 1

Answer: Option A.

Step-by-step explanation:

The joint probability for two different things is equal to the product of the individual probabilities.

For contractor A we have:

Prob that the job is done in time  = 0.95

Prob that the job is done within the budget = 0.97

Prob of both things at the same time P = 0.95*0.97 = 0.92

For company B we have:

Prob that the job is done in time  = 0.98

Prob that the job is done within the budget = 0.93

Prob of both things at the same time P = 0.98*0.93 = 0.91

Then the best contractor is contractor A, (with a joint probability of p = 0.92) and the correct option is option A.