CA Foundation · Quantitative Aptitude · Probability
The odds in favour of a company winning a tender are 3 to 5. What is the probability that the company wins the tender?
The probability is 3/8. Odds in favour of 3 to 5 mean 3 favourable outcomes for every 5 unfavourable ones, giving 8 outcomes in total. Probability is favourable outcomes divided by total outcomes, so 3 divided by 8 is the answer.
- A3/5
- B3/8Correct
- C5/8
- D2/5
Explanation
Odds in favour of 3:5 mean 3 favourable cases against 5 unfavourable cases, so the total is 8 cases. The probability is 3/(3+5) = 3/8. The option 3/5 is wrong because it divides by the unfavourable cases only, not the total.
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