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 at least one contract?
A) 0.55
B) 0.45
C) 0.10
D) 0.75

Question

Quizplus · Accepted Answer

The probability of winning at least one contract is the probability of winning the hotel bid plus the probability of winning the office building bid minus the probability of winning both bids. The probability of winning both bids is the product of the probabilities of winning each bid, which is 0.40 * 0.25 = 0.10. The probability of winning at least one contract is therefore 0.40 + 0.25 - 0.10 = 0.55.

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