



 
Cookie, I would use a tree diagram to solve this problem. In my diagram H is Hamilton, T is Toronto, S is success and F is failure. The numbers beside the branches are probabilities, so on the Hamilton side 0.60 is the probability that the location in Hamilton becomes available, 0.65 is the probability that the restaurant survives the first year if it is in Hamilton and hence 1  0.65 = 0.35 is the probability it fails if it is in Hamilton. You can now calculate the probability of each path through the tree from bottom to top. For example the probability that the location in Hamilton becomes available and the restaurant fail is 0.600.35 = 0.21 . Calculate the probability of each path through the tree and then see if these probabilities help you find what is asked for in a), b), c) and d). Penny  


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