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    Joint Probability Problems with Mutually Independent Distributions.

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    The probability of Toyota building a new production plant is 70% and the probability of GM building a new one is 50%. The following are the probabilities associated with the countries Toyota would build a new plant:
    U.S. .15
    Canada .30
    Mexico .30
    Korea .25

    The probabilities associated with the countries GM would build a new plant are:
    U.S .10
    Canada .60
    Mexico .15
    Korea .15

    What is the probability that both will open a plant in Canada assuming the decisions are mutually statistically independent?
    a. 2.1%
    b. 6.3%
    c. 13.3%
    d. 90 %
    e. None of the above

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    Solution Preview

    The answer is B.

    The probability that Toyota will open a ...

    Solution Summary

    This solution calculates the probability of Toyota and GM building new plants.