(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 ii. will not secure Project A or will not secure Project B (b) Do you agree that “if two events are mutually exclusive then these two events will be independent”? Why? (c) Provide one business-related example each, with explanation, for mutually exclusive and independent events.
P(A)=0.4 worth $120 million
P(b)=0.3 worth $ 1.8 million
Both projects are independent of each other. What is the probability that the company:
i. will secure Project A or B but not both
0.4*0.7+0.3*0.6 = 0.46
ii. will not secure Project A or will not secure Project B
1-P(will secure both)
1-0.4*0.3 = 0.88
I'll give b and c a go .....
(b) Do you agree that “if two events are mutually exclusive then these two events will be independent”? Why?
NO if they are mutually exclusive it means that if one happens the other cannot happen so they would not be independent. They are totally dependent on each other.
(c) Provide one business-related example each, with explanation, for mutually exclusive and independent events.
Mutually exclusive:
Is Fred going to become the CEO or is Suzie going to become the CEO (given that there will only be one CEO)
Independant events:
Will it rain today and will Suzie become the CEO.
