Strom Construction made a bid on two contracts. The owner identified the possible outcomes and subjectively assigned the following probabilities.

Experimental Obtain Obtain

Outcome Contract I Contract 2 Probability

1 Yes Yes 0.15

2 Yes No 0.15

3 No Yes 0.30

4 No No 0.25

a. Are these valid probability assignments? Why or why not?

b. If not, what would have to be done to make the probability assignments valid?