Question

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?

Answer 1

0.00183

Explanation:

The two companies produce different products and the chance to go bankrupt will be different based on the product made. So, the probability of the company A and B to go bankrupt is independent.

To find the answer of this question, we just need to multiply the probability to go bankrupt of each company. The calculation will be:

P(A=bankrupt) * P(B=bankrupt)= 3% * 6.1% =0.183%= 0.00183