Question
Download Solution PDF60% of the employees of a company are college graduates. Of these, 10% are in sales. Of the employees who did not graduate from college, 80% are in sales. The probability that an employee selected at random is in sales, is:
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFGiven
P(A) = 0.60
P(B/A) = 0.10
Concept:
P(A | B) ⋅ P(B) = P(B | A) ⋅ P(A)
Calculation:
Let A be the event : the employees are graduate
Let B be the event : the employees are in sales
⇒ P(B) = P(A).P(B/A) + P(A’). P(B/A)’
⇒ 0.60 × 0.10 + 0.40 × 0.80
∴ The probability that an employee selected at random is in sales, is 0.38
Important Points
Probability always lies between 0 to 1
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