The URS construction company has submitted two bids, one to build a large hotel in London and the other to build a commercial office building in New York City. The company believes it has a 40% chance of winning the hotel bid and a 25% chance of winning the office building bid. The company also believes that winning the hotel bid is independent of winning the office building bid. What is the probability the company will win both contracts?
A) 0.55
B) 0.44
C) 0.10
D) 0.75

Question

Quizplus · Accepted Answer

To find the probability of both events happening, you multiply the probabilities of each event. Thus, 0.40 (chance of winning the hotel bid) * 0.25 (chance of winning the office building bid) = 0.10 or 10%.

The URS Construction Company Has Submitted Two Bids, One to Build