Suppose that start-up companies in the area of

Solution :

Step 1 of 3:

Let the probability of the area of biotechnology company profitable is 0.2 and

Let the probability of the area of information technology company profitable is 0.15.

We assume that the 2 companies function are independent.

Our goal is to find :

a). What is the probability that both companies become profitable?

b). What is the probability that neither companies become profitable?

c). What is the at least one of the two companies become profitable?

a).

Now we have to find the probability that both companies become profitable.

Here A and B be the two event.

Let A be the area of biotechnology company profitable and

Hence P(A)=0.2

Let B be the area of information technology company profitable.

Hence P(B)=0.15

The formula of is

We know that ,and .

Substitute the all values in the above equation.

Therefore the probability that both companies become profitable is 0.03