A company has decided to bid for a new contract which is up for tender. There are three other competing companies who could possibly take on the contract and it is thought there is
a 60% chance that competitor A will bid,
a 50% chance that competitor B will bid,
and 40% chance that competitor C will bid.
1. What is the probability that one other competitor will bid for the contract?
(probable answer: 0.6*0.5*0.6 + 0.4*0.5*0.6 + 0.4*0.5*0.4 =0.38)
2. Assuming that all companies who bid for the contract have an equal opportunity of winning it, What is the probability that:
(a) you will win the contract?
( guessed answer:P(win)=p(loss)=0.5 let our company be Z.
p(Z win,A loss,B Loss,C Lose) +(Z w, A L, B L)*3[because instead of AB there could be BC or CA & their prob. is the same] +( Z w, A L) *3[because instead of A there could be B or C] + (Z w) =0.9375)
(b) Competitor A wins the contract?
(is it similar to the a one above?)
Given that you do eventually win the contract, what is the probability
(c) no other companies bid for the contract?
(d)exactly one other company bid for the contract?
Any kind of help will be appreciated. Thanks.