A construction firm bids on two different contracts. Let E1 be the event that the bid on the first contract is successful, and define E2 analogously for the second contract. Suppose that P(E1) = 0.3 and P(E2) = 0.7 and that E1 and E2 are independent events.

Calculate the probability that both bids are successful

The probability that both contracs are successful is 0.21

Step-by-step explanation:

Given

E1 = the event that the bid on the first contract is successful

E2 = the event that the bid on the second contract is successful

P(E1) = 0.3

P(E2) = 0.7

Let P(A) represent the event that both contracts are successful

P(A) = P(E1 and E2)

Since both events are independent. P(A) becomes

P(A) = = P(E1 * P(E2)

By substituton

P(A) = 0.3 * 0.7

P(A) = 0.21

Hence the probability that both contracs are successful is 0.21

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