Hubble Construction Company has submitted a bid on a state government project that is to be funded by the federal government's stimulus money in Arizona. The price of the bid was predetermined in the bid specifications. The contract is to be awarded on the basis of a blind drawing from those who have bid. Five other companies have also submitted bids. Suppose that there are two contracts to be awarded by a blind draw. What is the probability of Hubble winning both contracts? Assume sampling with replacement.
A) 0.2778
B) 0.1667
C) 0.6944
D) 0.0278

Question

Quizplus · Accepted Answer

The probability of Hubble winning one contract is 1/6 (since there are 6 companies including Hubble). Since the drawing is with replacement, the probability of winning the second contract remains 1/6. Therefore, the probability of winning both contracts is (1/6) * (1/6) = 1/36 = 0.0278.

Hubble Construction Company Has Submitted a Bid on a State