The probability of a new Wal-Mart being built in town is 64%. If Wal-Mart comes to town, the probability of a new Wendy’s restaurant being built is 90%. What is the probability of a new Wal-Mart and a new Wendy’s restaurant being built?
P(AB) = P(A|B) × P(B) The probability of a new Wal-Mart and a new Wendy’s is equal to the probability of a new Wendy’s “if Wal-Mart” (0.90) times the probability of a new Wal-Mart (0.64). (0.90)(0.64) = 0.576. |