I'm working on stats. I'm not asking for answers. can someone help explain what this all means?

A small information systems firm (let's call it ISF, Inc.) has the resources to respond to two invitations to submit a proposal for a contract. When a proposal is submitted, it may be accepted or rejected outright, or a refinement of the proposal may be requested (a refinement give more ysis, more detail about the proposal). Submission of the refinement will then lead to acceptance or rejection. Responding to the two invitations may be regarded as an experiment. ume that the results of responding to the two invitations are statistically independent. Also, refining the proposal is costly, so from IFS's point of view, immediate acceptance of a proposal is more profitable than acceptance after a refinement, and rejection after a refinement involves a greater loss than immediate rejection. Of course, acceptance after a refinement is more profitable than immediate rejection. The firm always submits a refinement when one is requested, because in the long run it is profitable