A chief executive officer has resources to hire one vice-president or three mana

Question

A chief executive officer has resources to hire one vice-president or three managers. He believes that he has probability of 0.6 of successfully recruiting the vice-president candidate and probability of 0.8 of successfully recruiting each of the manager candidates. Assume all candidates for managers will make their decisions independent of each other. The CEO must successfully recruit either the vice-president or all 3 managers to consider his hiring strategy a success. Which strategy should he choose? Justify your answer with calculations.

Explanation / Answer

Ans:

Probability that he successfully recruit one vice president=0.6

Probability of recruting successfully all 3 managers =0.8*0.8*0.8=0.512

As,probability of succesfully recruiting vice president is higher(0.6) that successfully recruiting all of 3 managers(0.512).

So,he should have strategy to recruit Vice president.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.