A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN: 9780134753119
Author: Sheldon Ross
Publisher: PEARSON
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12 involving the profitability of a small business. Assume that the business makes a profit with probability 0.7 in the first year. For each year thereafter, the business makes a profit with probability 0.9 if it made a profit in the previous year, and with probability 0.2 if it did not make a profit in the previous year.

What is the probability that the business makes a profit in exactly two of its first three years?

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