The company A produces products a, and the company B produces products b. It is known that 3 percent of companies that produce products a go bankrupt over the year. Plus, the probability for companies producing products b to go bankrupt over the year is 6.1. What is the probability (given in decimal number) that both companies are going bankrupt over the year?

NB! Give the answer as a decimal number and round it to two decimal places.

probability = 0.183 %

Explanation:

given data

produce products = 3 %

probability for producing products b = 6.1

solution

Both companies produce different products and the likelihood of bankruptcy varies depending on the product produced. So, the bankruptcy potential of A and B companies is independent.

we will  multiply the probability of each company's bankruptcy and that will be

probability = P(A=bankrupt) ×  P(B=bankrupt)

probability = 3% × 6.1%

probability = 0.183 %