A Company Is Considering Producing Two New Electronic Games Designed

question 95

Multiple Choice

A company is considering producing two new electronic games designed for the popular Gameboy toy. Based on market data, management believes that there is a 60 percent chance that a "cops and robbers" game will be successful and a 40 percent chance that "let's play house" game will be successful. As these products are completely different, it may be assumed that the success of one is totally independent of the success of the other. If two products are introduced to the market, what is the probability that both are failures?

• A) 0.16
• B) 0.24
• C) 0.80
• D) 0.36
• E) None of the above

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Definitions:

Investment

Allocating resources, usually money, with the expectation of generating an income or profit.

Capital

Assets or money owned by an individual or organization, or funds available for specific purposes like establishing a company or investment.

Stocks

Shares of ownership in a corporation, representing a claim on the company's assets and earnings.

Bonds

Financial securities that represent a loan made by an investor to a borrower, typically corporate or governmental, which pays interest over time and returns the principal at maturity.