Question

question 8 of 10
anne is choosing a contractor. she has narrowed down her selection to two companies and will base her decision on the likelihood that the job is done on time and on budget. she uses online reviews to estimate the probabilities.
which contractor should anne choose to maximize the probability that the job will be done on time and on budget? assume all events are independent.
a. contractor a. the probability that both conditions are met is 0.92.
b. contractor b. the probability that both conditions are met is 0.91.
c. contractor a. the probability that both conditions are met is 0.93.
d. contractor b. the probability that both conditions are met is 0.90.

Explanation:

Step1: Calculate probability for Contractor A

Since events are independent, use formula \(P(A\cap B)=P(A)\times P(B)\).
For Contractor A: \(P = 0.95\times0.97=0.9215\approx0.92\)

Step2: Calculate probability for Contractor B

For Contractor B: \(P = 0.98\times0.93 = 0.9114\approx0.91\)

Answer:

A. Contractor A. The probability that both conditions are met is 0.92.