An aircraft

An aircraft manufacturing company has submitted bids on two separate airline contracts, A and B. The company feels it has a 70% chance of winning contract A and a 25% chance of winning contract B. Furthermore, it believes that winning contract A is independent of winning contract B.

a) What is the company's probability of winning either of the two contracts?
b) What is the probability that the company will win both contracts?

Correct answer:

p₁ =  0.775
p₂ =  0.175

Step-by-step explanation:

$$\begin{gathered} a=70\%=\frac{70}{100}=\frac{7}{10}=0.7 \\ b=25\%=\frac{25}{100}=\frac{1}{4}=0.25 \\ {p}_1=a+b-a\cdot b=0.7+0.25-0.7\cdot 0.25=0.775 \end{gathered}$$

$p_2=a\cdot b=0.7\cdot 0.25=0.175$

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