The probability that a Company in the energy sector develops two projects, independently, in the next 5 years is the following: The Natural Gas project has a 30% probability and the Electrical Matrix project, 35% to carry it out. Determine the probability that the company: i) Develop both projects in the next 5 years. ii) Go ahead with at least one of the two projects in the next 5 years. iii) Do not develop the projects iv) Develop the Gas project once the Electrical project is carried out in 5 more years. v) Develop only the electrical project in the next 5 years.
Accepted Solution
A:
A = The event of developing the Natural Gas project.
B = The event of developing the Electrical Matrix project.
i) Probability of developing both projects in the next 5 years:
Since these are independent events, you can multiply their probabilities:
P(Develop both projects) = P(A) * P(B) = 0.30 * 0.35 = 0.105 or 10.5%