Answer to Question #70018 in Statistics and Probability for nicholaslim

Question

(a) Superior Construction Pte Ltd is a successful company dealing with many major projects in

Singapore. Recently, it has submitted its biddings for two major Government projects. Project A

worth about $120 million and the company believes it has 40% chance of securing the project.

Project B worth $1.8 billion and there is 30% chance the company can win the project. Both projects

are independent of each other. What is the probability that the company:

i. will secure Project A or B but not both (3 marks)

ii. will not secure Project A or will not secure Project B (3 marks)

(b) Do you agree that “if two events are mutually exclusive then these two events will be independent”?

Why? (5 marks)

(c) Provide one business-related example each, with explanation, for mutually exclusive and

independent events. (4 marks)