An aerospace company has submitted bids on two separate federal government defense contracts. The company president believes that there is a 40% probability of winning the first contract. If they win the first contract, the probability of winning the second is 65%. However, if they lose the first contract, the president thinks that the probability of winning the second contract decreases to 49%. 1. What is the probability that they will lose both contracts?
2. What is the probability that they win only one contract?
3. What is the probability that they win both contracts?

1. What is the probability that they will lose both contracts?

probability of losing both contracts = (1 - 40%) x (1 - 65%) = 21%

2. What is the probability that they win only one contract?

probability of winning 1 contract = 1 probability of winning both contracts - probability of not winning any contract = 1 - 21% - 26% = 53%

3. What is the probability that they win both contracts?

the probability of winning both contracts = probability of winning first contract x probability of winning second contract = 40% x 65% = 26%

answer; encouraging the development of innovations by firms attempting to break a monopoly; (creative destruction)

answer; i believe the correct answer is (sales promotion;