Question

In contract negotiations between a local government agency and its workers,

Answer 1

Answer:

a. 0.4

b. Not independent.

Step-by-step explanation:

a. We use the probability table attached below for our calculations.

-the probability that an agreement is reached on both sides is obtained from the table:

$P(Agreement)=\frac{400}{1000}\\\\\\=0.4$

b. To determine whether the two events are independent, we compare the probabilities $P(s)\times P(i)$ and $P(s \ and \ i)$ where i denotes insurance and s denotes salaries:

$P(s)\times P(i)=0.5\times 0.7\\\\=0.35\\\\\\P(s \ and \ i)=0.4$

Two events are considered to be independent, if and only if:

$P(A).P(B)=P(A\ and \ B)\\\\=>P(s).P(i)\neq P(s\ and\ i)$

Hence, the events are not independent.