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A real estate developer concludes that her new project has a 0.30 probability of breaking even...

A real estate developer concludes that her new project has a 0.30 probability of breaking even and a 0.63 probability of earning a profit. Assuming the developer has calculated these probabilities correctly, what is the probability of the project losing money?

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Answer #1

Probability of breaking even(A) = 0.30

Probability of earning a profit (B) = 0.63

We denote the probability of losing money by C.

Therefore, probability of the project losing money = 1 - ( 0.63 + 0.30 )

= 0.07

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