Nivaar worked solution (AI-drafted; not reviewed by a licensed engineer)
Notes on this paper
National Examinations, May 2016 — 04-BS-2, Probability and Statistics (2 hours, closed book except one hand-written information sheet and an approved calculator; any 5 of 8 questions constitute a complete paper — all 8 are answered here as a full study resource).
Reference texts: Walpole, Myers, Myers & Ye, Probability & Statistics for Engineers and Scientists, 9th ed. (Pearson) — sampling distributions, binomial/Poisson/hypergeometric models, confidence intervals, hypothesis tests, correlation and simple linear regression.
Find. (a) the tree; (b) $P(B\cap M_2)$, $P(M_3\cap B^c)$, $P(B)$; (c) $P(M_3|B)$; (d) $P(\text{fewer than 2 of 5 in favour})$.
Approach. Multiply along each branch of the two-stage tree for joint probabilities, sum all four "in favour" branches (law of total probability) for $P(B)$, apply Bayes' theorem for the reverse conditional in (c), and treat "favour" as a Bernoulli success probability across an independent sample of 5 citizens for (d).
(b)(i) Joint probability along the M2→B branch. $\Pr(B\cap M_2)=P(M_2)\,P(B|M_2)=0.25(0.80)=\boxed{0.20}$.
(b)(ii) Joint probability along the M3→Bc branch. $\Pr(M_3\cap B^c)=P(M_3)\big[1-P(B|M_3)\big]=0.15(0.10)=\boxed{0.015}$.
(b)(iii) Total probability of B. $\Pr(B)=\sum_i P(M_i)P(B|M_i)=0.40(0.75)+0.25(0.80)+0.15(0.90)+0.20(0.80)=0.300+0.200+0.135+0.160=\boxed{0.795}$.
(c) Bayes' theorem for P(M3 | B). $P(M_3|B)=\dfrac{P(M_3)P(B|M_3)}{P(B)}=\dfrac{0.15(0.90)}{0.795}=\dfrac{0.135}{0.795}=\boxed{0.1698}$.
(d) Binomial with success probability P(B)=0.795, n=5. $P(\text{fewer than 2})=P(Y\le1)=\sum_{k=0}^{1}\binom{5}{k}(0.795)^k(0.205)^{5-k}=0.000363+0.00702=\boxed{0.00738}$.