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Question: Contracts. Your company bids for two contracts. You believe the probability you get contract #1 is 0.8. If you get contract #1, the probability you also get contract #2 will be 0.2, and if you do not get #1, the probability you get #2 will be 0.3.
a) Are the two contracts independent? Explain.
b) Find the probability you get both contracts.
c) Find the probability you get no contract.
d) Let X be the number of contracts you get. Find the probability model for X.
e) Find the expected value and standard deviation.
a. What is the market supply curve given the above information? (Hint: you might find it helpful to draw a sketch to guide your work here.) b. What is the equilibrium price and quantity in this market?
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