Answer:
A) 0.3
B) 0.2
Step-by-step explanation:
We are given the following in the question:
P(Industry in Shanghai) = P(A) = 0.7
P(Industry in Beijing) = P(B) = 0.4
P(Industry in Shanghai or Beijing) = P(A∪B) = 0.8
a)We need to find the probability that the industry is located in both Shanghai and Beijing that is we need to find P(A∩B)
Formula:
P(A∪B) = P(A) + P(B) - P(A∩B)
Putting the values we get,
0.8 = 0.7 + 0.4 - P(A∩B)
P(A∩B) = 0.3
Thus, the probability that the industry is located in both Shanghai and Beijing is 0.3.
b)Now, we need to find the probability that it is not in either cities
Probability = 1 - Probability(Industry in Shanghai or in Beijing)
= 1 - P(A∪B)
= 1 - 0.8
= 0.2