If a person A speaks the truth in 80% cases and the person B speaks the truth in 75% cases, then the probability that they contradict each other in a statement is

$\frac{7}{20}$

The correct answer is Option (4) → $\frac{7}{20}$

Let A speaks truth with probability $0.8$ and lies with $0.2$.

B speaks truth with probability $0.75$ and lies with $0.25$.

They contradict each other when:

(truth by A, lie by B) OR (lie by A, truth by B)

$P = 0.8 \cdot 0.25 + 0.2 \cdot 0.75$

$P = 0.20 + 0.15$

$P = 0.35$

$0.35$