Katie C.

asked • 04/10/15

What is the probability that the business makes a profit in exactly two of its first three years?

Assume that the business makes a profit with probability 0.3 in the first year. For each year thereafter, the business makes a profit with probability 0.6 if it made a profit in the previous year, and with probability 0.3 if it did not make a profit in the previous year.
What is the probability that the business makes a profit in exactly two of its first three years?

1 Expert Answer

By:

Jon P. answered • 04/10/15

Harvard honors math degree, experienced tutor in math and ACT prep

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