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Question: company a has probability 07 of defaulting company b has...

Question details

Company A has probability .07 of defaulting. Company B has probability of .001 of defaulting. Assume that the event that company A defaults is independent of the event that company B defaults.

a) What is the probability that both company A and company B defaults?

b) What is the probability that either company A or company B or both default?

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