Suppose a hi-tech company's workforce displays the following characteristics:
20% of the workforce have 3 yrs or less of university education
51% of the workforce have 4 yrs of university education
29% of the workforce have over 4 yrs of university education
An internal company survey showed that the likelihood of an employee earning over $60,000/yr is related to yrs of education in the following manner:
-4% having 3 yrs or less of university earn over $60,000/yr
-10% having 4 yrs of university earn over $60,000/yr
-12% having over 4 yrs of university earn over $60,000/yr
1. An employee earns over $60,000. What is the probability that they have 3 yrs or less of university? (Round to 3 decimals-0.5555 would be 0.556)
2. An employee earns over $60,000. What is the probability that they have 4 yrs of university? (Round to three decimals)
3. An employee earns over $60,000. What is the probability that they have over 4 yrs of university? (Round to 3 decimals)
Thank you for anything.
Very Tough Probability Question?
X = event that employee has 3 or less years univ
Y = event that employee has 3 or less years univ
Z = event that employee has 3 or less years univ
W = event that employee makes over 60k
Given: P(X) = 0.2, P(Y) = 0.51, P(Z) = 0.29
P(W|X) = 0.04
P(W|Y) = 0.10
P(W|Z) = 0.12
RTF: P(X|W), P(Y|W), P(Z|W)
1) P(X|W) = P(X n W) / P(W) ...(1)
P(W|X) = P(X n W) / P(X)
thus P(X n W) = P(W|X) * P(X)
= 0.04 * 0.2 = 0.008
P(W) = P(W|X)*P(X) + P(W|Y)*P(Y) + P(W|Z)*P(Z)
= 0.008 + 0.1*0.51 + 0.12*0.29
= 0.0938
So back to eqn 1, P(X|W) = 0.008 / 0.0938
= 0.085
Similarly P(Y|W) = 0.544
P(Z|W) = 0.371
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