RST Company has production facilities in Salt Lake City and Cleveland. The probability that in any given year a fire will damage the production facility in Salt Lake City is 5 percent. The probability that in any given year a fire will damage the Cleveland production facility is 4 percent. What is the probability that BOTH production facilities will be damaged by fire in any given year?

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Business

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22 August, 10:10

RST Company has production facilities in Salt Lake City and Cleveland. The probability that in any given year a fire will damage the production facility in Salt Lake City is 5 percent. The probability that in any given year a fire will damage the Cleveland production facility is 4 percent. What is the probability that BOTH production facilities will be damaged by fire in any given year?

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Devon Castillo · Answer 1

0.2 Percent

Explanation:

The combined chances of occurence of an event = Probability of one event * Probability of the other event

Now by putting values in the above equation, we have:

The combined chances of occurence of an event = 5% * 4% = 0.2 percent

So the chances of fire damaging both sites in a single year is less than 0.2 percent