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Answer:
0.64 = 64% probability that two randomly sampled new employees will both be able to survive their first year
Step-by-step explanation:
For each employee, there are only two possible outcomes. Either they survive the first year, or they do not. The probability of an employee surviving the first year is independent of other employees. This means that we use the binomial probability distribution to solve this question.
Binomial probability distribution
The binomial probability is the probability of exactly x successes on n repeated trials, and X can only have two outcomes.
In which is the number of different combinations of x objects from a set of n elements, given by the following formula.
And p is the probability of X happening.
A San Francisco-based tech firm is able to keep 80% of its new employees after one year.
This means that
Q1. What is the chance that two randomly sampled new employees will both be able to survive their first year
This is P(X = 2) when n = 2. So
0.64 = 64% probability that two randomly sampled new employees will both be able to survive their first year