A certain type of new business succeeds 70% of the time. Suppose that four such businesses open (where they do not compete, so it is reasonable to believe that their relative successes would be independent). The probability that all four businesses succeed is?

Question

0.2401


0.3018


0.1428


0.4207

Answer 1

0.2401

To calculate this probability, we simply multiply the success rate (0.7) by itself four times, as each business has a 70% chance of succeeding independently:

0.7 * 0.7 * 0.7 * 0.7 = 0.2401

Therefore, the probability that all four businesses succeed is 0.2401.