A small store installed a diesel-powered generator for emergency power outage because they function independently of electric power. The past history of the town indicates that on about 5% of days during summer the town loses electricity due to high winds. However, high winds do not affect functioning of genera- tors. These generators have a failure rate of about 2%. On a given summer day, what is the probability that the store will be totally out of power?
Good day, i just want to ask if my procedure of solving this is correct. The problem says 5% on summer days, there is not power. (we can say 95%, there is power). The generator has a failure rate of 2%. So to find the probability of the store to be totally out of power is just to multiple 5% to 2% (since, there is no power if the generator fails and there is no power provided by a company). Answer is 1/1000