Question

5. The owners of a two-person business make their decisions independently of each other and then compare their decisions. If they agree, the decision is made; if they do not agree, then further consideration is necessary before a decision is reached. The first owner makes the right decision 60% of the time; the second - 70% of the time. Enter your answers as decimals. 5(a) What is the probability that they make the right decision on the first try. 5(b) What is the probability that they make the wrong decision on the first try. 5(c) What is the probability that they delay the decision for further study.

Answer 1

Answer:

A. 0.42

B. 0.12

C. 0.45

Step-by-step explanation:

A. The probability that they make the right decision on the first try

First person = 60%

Second person = 70%

= 60% * 70%

= 0.42

B. Probability that they make wrong decision

= Wrong decision from first person * wrong decision from second person

Wrong decision = 1- right decision

= 1-0.60 * 1-0.70

= 0.40x0.30

= 0.12

3. Probability they delay decision

= 0.60(1-0.60)+0.70(1-0.70)

= 0.60x0.40 + 0.70x0.30

= 0.24+ 0.21

= 0.45