The company A produces products a, and the company B produces products b. It is known that 3 percent of companies that produce p
roducts a go bankrupt over the year. Plus, the probability for companies producing products b to go bankrupt over the year is 6.1. What is the probability (given in decimal number) that both companies are going bankrupt over the year?
The two companies produce different products and the chance to go bankrupt will be different based on the product made. So, the probability of the company A and B to go bankrupt is independent.
To find the answer of this question, we just need to multiply the probability to go bankrupt of each company. The calculation will be:
