David W. answered 07/18/15
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The odds against R occurring are 3:2. That means the Probability of R not occurring is 3/(3+2) or 3/5 or 60% or 0.60.
So, the probability of event R happening is one minus that value (because 1 is certainty). So, the Probability of R occurring is 0.4.
The problem asks us about the Probability of both events R and E occurring. If the Probability of event E occurring is larger than zero, then that reduces the Probability of both events R and E occurring simultaneously (because event E could possibly occur when event R did not). So, the answer must be less than or equal to 0.40.
That leaves only (a) 0.32 and (e) 0.40 as choices. If it is a safe assumption that event E has some non-aero probability of occurring, then the single answer is (a) 0.32. But if event E will never occur (so why is it even mentioned?), then both (a) 0.32 and (e) 0.40 would be answers. The given odds against event R are too great for answers (b), (c), and (d) to be possible.