CMA Foundation · Fundamentals of Business Mathematics and Statistics · Probability
The odds in favour of a Mumbai firm winning a tender are 3 to 5. What is the probability that the firm does not win the tender?
The probability of not winning is 5/8. Odds in favour of 3 to 5 give a winning probability of 3/(3+5), which is 3/8. The complement is 1 minus 3/8, which equals 5/8.
- A3/8
- B3/5
- C5/8Correct
- D5/3
Explanation
Odds in favour 3:5 mean P(win) = 3/(3+5) = 3/8. So P(not win) = 1 - 3/8 = 5/8. The option 3/5 wrongly uses the odds as a probability.
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