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ABC project consulting firm is considering bidding for two projects (Project A and B). Based on...

ABC project consulting firm is considering bidding for two projects (Project A and B). Based on past records, management believes that there is a 60% chance that project A bid will be successful, and a 40% chance that project B bid will be successful. As these two projects are completely different, it may be assumed that the success of one is totally independent of the success of the other. If these two projects are bid for concurrently, what is the probability that both projects bids will be successful?

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Answer #1

Probability that project A bid will be successful, P(A) = 60%

Probability that project B bid will be successful, P(B) = 40%

As these two projects are completely different,

and success of one is totally independent of the success of the other.

It means that events of success of each of the projects are mutually exclusive.

Using Bayes' theorem,  if these two projects are bid for concurrently, then

probability that both projects bids will be successful,

= 0.6 * 0.4

= 0.24 or 24 %

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ANSWER: 24 %

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