An aerospace company has submitted bids on two separate federal government defense contracts. The company president believes tha
t there is a 40% probability of winning the first contract. If they win the first contract, the probability of winning the second is 72%. However, if they lose the first contract, the president thinks that the probability of winning the second contract decreases to 54%.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 =
1))Probability of wining both = Probability that first contract is won* Probability that second contract is won = 0.4 * 0.72 = 0.288 = 28.8%
2)Probability of losing = 1 - Probability of winning
Probability that they will lose both contracts = Probability that first contract is lost * Probability that second contract is lost = (1 - 40/100) * (1 - 54/100) = 0.276 = 27.6%
3)Probability that any one is won = 1 - both contracts are won - both contracts are lost = 1 - 0.276 - 0.288 = 0.436 = 43.6%
