A retail grocer has decided to market organic "health foods" and will purchase a new line of products from each of two suppliers. Unknown to the grocer, the two suppliers are in financial distress. Past experience has shown that, for firms with similar credit histories, the probability that bankruptcy proceedings will be initiated within one year is .7. We are interested in observing the financial progress of the two suppliers over the next year. For this experiment, the simple events and their associated probabilities are as follows (B1: Supplier 1 declares bankruptcy; N1: Supplier 1 does not declare bankruptcy, etc.): Simple Events are (B1, B2), (B1, N2), (N1, B2), (N1, N2) with associated probabilities of .49, .21, .21, and .09 respectively.

Compute the probabilities of each of the following events:

D: {Neither supplier declares bankruptcy}
F: {At least one supplier declares bankruptcy during the next year}

I have not been able to figure this problem out. Can you show how do work this problem out? Thanks.

Solution Preview

Before we begin a problem such as this one, the first thing that we need to do is to check to see what information is relevant to the calculation and what is not. In this problem, note that there is information ...

Solution Summary

This solution provides a step-by-step answer to the probability problem.

... sample of 10 international traveleers, what is the probability that NONE ... This solution consists of a detailed explanation of computing probabilities of normal ...

...Compute the probability that the person does indeed have the disease. Round your answer to two decimal places. ... The required probability is computed. ...

...Compute the probability that the sample mean (X) is between $790 and $810. ...Compute the probability that the sample mean (X) is between $790 and $810. Solution: ...

... One component of each computer is a Gorilla Glass ... average payoffs where weights are the probabilities for different sc ... Boards 10 30 50 70 Probability 0.20 0.40 ...

... 32 Standardizing the variable X using Z = = and from standard σ 4 normal tables, we can find the probabilities as follows. a. Compute the probability that it ...

... Out of the total, non defectives from A = 35% x 98% (since 2 % are defective) = 34.3% Probability that the computer is non defective and from factory A = 34.3%. ...

... m = 50 and standard deviation s = 7. Compute the following probabilities. Be sure to draw a normal curve with the area corresponding to the probability shaded. ...

... c. Compute the test statistic. ... The solution provides step by step method for the calculation of probability, confidence interval for mean and testing of ...

... (2) Enter an Excel formula to compute the sample proportion. Enter the confidence level. ... The expert examines probability distribution and interval estimation. ...