Bob, the proprietor of midland lumber, believes that the odds in favor of a business deal going through are 9 to 5. what is the (subjective) probability that this deal will not materialize? (round your answer to three decimal places.)

There is a 35.7% probability that this deal will not materialize.

Step-by-step explanation:

This problem can be solved by a simple system of equations.

-I am going to say that x is the probability that this deal materializes and y is the probability that this deal does not materialize.

The sum of all probabilities is always 100%. So

.

Bob, the proprietor of Midland Lumber, believes that the odds in favor of a business deal going through are 9 to 5.

Mathematically, this means that:

We want to find the value of y. So, we can write x as a function of y in equation 2), and replace it in equation 1).

Solution:

There is a 35.7% probability that this deal will not materialize.

step-by-step explanation: