Katie C.

asked • 03/25/15

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 0.2 in the first year. For each year thereafter, the business makes a profit with probability 0.7 if it made a profit in the previous year, and with probability 0.2 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:

Edward C. answered • 03/25/15

Caltech Grad for math tutoring: Algebra through Calculus

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