Question 1 An international aerospace company has submitted bids on two separate federal government defence contracts, A and B. The company feels that it has a 60% chance of winning contract A and a 30% chance of winning contract B. If the company wins contract B then the company believes it has an 80% chance of winning contract A. What is the probability that the company will win both contracts? What is the probability that the company will win at least one of the two contracts? If the company wins contract B, what is the probability that it will not win contract A?

Question 2 A marketing manager of a leading firm believes that total sales for the firm next year can be modelled by using a normal distribution with a mean of $2.5 million and a standard deviation of $300 000.

What is the probability that the firm's sales will exceed $3 million? What is the probability that the firm's sales will fall within $150 000 of the expected level of sales? Determine the sales level that has only a 9% chance of being exceeded next year.

Question 3 The manufacturer of cans of salmon that are supposed to have a net weight of 120 g tells you that the net weight is actually a random variable with a mean of 121 g and a standard deviation of 3.6 g. Suppose that you take a random sample of 36 cans. Find the probability that the sample mean will be less than 119.4 g.