Question

A company studied the number of lost-time accidents occurring at its Brownsville, Texas, plant. Historical records show that of the employees suffered lost-time accidents last year. Management believes that a special safety program will reduce such accidents to during the current year. In addition, it estimates that of employees who had lost-time accidents last year will experience a lost-time accident during the current year.

Answer 1

Answer:

1. 0.015

2. 0.135

Explanation:

Given that

$P (B| A)$ = 15%

P(A) = 10%

P(B) = 5%

a. The calculation of probability an employee will experience a lost-time accident in both years is shown below:-

$P(A\cap B) = P (B| A)P (A)$

now, we will put the values into the above formula

= 0.15 × 0.10

= 0.015

2. The calculation of probability an employee will experience a lost-time accident over the two-year period is shown below:-

$P(A\cup B) = P(A) + P(B) - P(A\cap B)$

= 0.10 + 0.05 - 0.015

= 0.135