Assume that the business makes a profit with probability 0.8 in the first year. For each year thereafter, the business makes a profit with probability 0.9 if it made a profit in the previous year, and with probability 0.2 if it did not make a profit in the previous year. What is the probability that the business makes a profit in exactly two of its first three years?

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
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Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Assume that the business makes a profit with probability 0.8 in the first year. For each year thereafter, the business makes a profit with probability 0.9 if it made a profit in the previous year, and with probability 0.2 if it did not make a profit in the previous year.

What is the probability that the business makes a profit in exactly two of its first three years? 

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