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?

Question

Matias Schwartz

Mathematics

25 November, 10:28

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?

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Answers (1)

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Cristopher Barrett · Answer 1

0.00183

Step-by-step 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