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Question 2 All general workers at the Eastern Process Plant are reviewed by mana

ID: 3282697 • Letter: Q

Question

Question 2 All general workers at the Eastern Process Plant are reviewed by management annually. The outcome of this annual review is either no raise (status quo), a raise, being fired, promoted out of the general worker category, or the worker quits. Since all workers have signed an annual contract, these actions only occur at the end of each calendar year. The following table reflects the historical percentages: red Promoted Quits Raise 1090 30% No raise ! 60% 10% 10% 20% No raise Raise 30% 30% Find the probability that a worker, who did not receive a raise in th fired, promoted, or quits. e current year, will eventually be

Explanation / Answer

P(fired, promoted or quit|no raise) = P(no raise and (fired,promoted or quit))/P(no raise) = (0.2+0+0.1)/(0.6) = 0.3/0.6 = 0.5.

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