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    Computing probability using the Rule of Addition

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    In our virtual world, we own a construction company and bid on projects. Based on our past history of winning bids on projects, the probability of winning the next contract to build a school is 0.40, to build a hospital is 0.30 and to build both a school and a hospital is 0.20. What is the probability of winning a contract to build either the school or the hospital? The school only? The hospital only?

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    Solution Preview

    We need use the Rule of Addition.

    So P(build either the school or the hospital)=P(build the ...

    Solution Summary

    The solution gives detailed steps on computing the probability using the Rule of Addition.