Belt Auction

There is a 30 percent chance that a bidding firm will get contract (A) an a 40 percent chance they will get?

There is a 30 percent chans=ce that a bidding firm will get contract (A) an a 40 percent chance they will get contract (B). There is a 5 percent chance that they will get both. Are the events independent?

Public Comments

1. yes
2. For two events to be independent then the conditional probability must be equal to the unconditional probability P(A | B) = P(A) P(A | B) = P(A && B) / P(B) = P(A) this is where we find that for independent events P(A && B) = P(A) * P(B) in this case we have P(A && B) = 0.05 P(A) * P(B) = 0.30 * 0.40 = .12 P(A && B) != P(A)*P(B) and therefore the events are not independent.