Probability that both companies become profitable


Assume that start-up companies in area of biotechnology have probability 0.20 of becoming profitable and that those in area of information technology have probability 0.15 of becoming profitable. Further suppose that the start-up companies in biotechnology and information technology are independent.

(a) Determine the probability that both companies become profitable?

(b) Determine the probability that neither company becomes profitable?

(c) Determine the probability that at least one of the two companies become profitable?

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Basic Statistics: Probability that both companies become profitable
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