Concerned about the economy, the CEO of a marketing strategy company asks analysts to determine the probability of low demand of their services next year (L), of high demand (H), and of losses of at least $1 million due to unexpected events such as hurricanes (U). The analysts come up with P(L) = 0.63, P(H) = 0.28, P(U) = 0.09, P(H and U) = 0.02, and P(L and U) = 0.07.

a) What is the probability that next year is not of high demand or low demand?

b) What is the probability that next year has low demand for their services or losses of at least $1 million due to unexpected events?

c) Are the events low demand for their services and losses of at least $1 million due to unexpected events mutually exclusive? Explain.

d) Do you think that losses of at least $1million due to unexpected events and the event that demand is not low are mutually exclusive? Explain.