2. If we open a casino there is a .60 probability that the casino will be commercially viable. If we must be awarded a gaming license before we are allowed to open the casino and the probability of getting this license is .16, what is the probability that we get our license and the casino will be commercially viable?

3. Based on history, there is a .60 probability of a positive net present value when competitors do not respond to our introduction of a new product. Based on this same history, if competitors do respond, there is a .30 probability of a positive net present value. After studying the history and the financial capabilities of our competitors going forward we determine that there is a .54 probability that competitors will respond. What is the probability of a positive net present value?

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2 Probability of getting a license 016 Probability of a c... View the full answer