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Klaus can afford only one holiday. New Zealand has probability 0.6 and Alaska 0.35. What is the probability he goes nowhere?

AThe probability is 0.95
BThe probability is 0.05
CThe probability is 0.21
DThe probability is 0.65
Answer & Solution
Correct answer: B. The probability is 0.05
1. Klaus can afford only one holiday, so the two destinations are mutually exclusive. 2. For mutually exclusive events the union is simply the sum, giving 0.6 plus 0.35, which is 0.95. 3. Going nowhere is the complement of that union, so its probability is 1 minus 0.95, which is 0.05. 4. The value 0.21 is the product of the two probabilities and would only matter if the events were independent. _Source: OpenStax Introductory Business Statistics (CC BY 4.0), Ch 3 "Probability Topics", section 3.3 Two Basic Rules of Probability_
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