A company studiod the number of lost time accidents occumng at its Brownsville,

Question

A company studiod the number of lost time accidents occumng at its Brownsville, Texas, plant. istorical records show that 796 of the employees had lost-time accidents last year. M nagement believes that a special safety program will reduce the accidents to 6% during th current year. In addition, it estimates that 14% of those ompleyaes having had lost-timo accidents last year will have a lost-timo accidonk during the current year. a. What percentage of the employees will have lost-time accidents in both years? When required, round the percent to three decimal places before converting to a percentage. For example, .8839 would be rounded to .884 and entered as 88.4 b. What percentage of the employees will have et least one lost time accident over the t o-year period, when required round the Percent to three dec mal places before co ve ting to a percentage For o ar ple S39 would be rounded to 884 d entered as 88.4

Explanation / Answer

We answer these questions assuming that the special safety program has been implemented which reduces the lost time accidents to 6%.

a. % of employees with possible lost time accident in both years = 6% * 14% = 0.840%. This is basis 6% employees are expected have lost time in Year 1 and in Year 2 14% of these 6% will have lost time.

b. % of employees with atleast lost time over two years = 6% * (1-14%) = 5.160%. This is basis that 6% employees are expected to have lost time in Year 1 and out of these 14% also in Year 2 - hence 86% of 6% will have it only once in two years (atleast once in 2 years) .

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