Answer:
P(A freshman will graduate) = 1 - 0.4167 = 0.5833
Explanation
Probability that a freshman will graduate = 0.25
Probability that a freshman will become sophomores = 50% = 0.50
Probability that he will quit = 25% =0.25
Now.
Probability that a sophomore will graduate = 0.50
Probability that a sophomore will remain sophomore = 0.25
Probability that it will quit = 0.25
so,
P(Freshman will graduate) = P(WHo directly graduated from freshman) + P(WHo graduated by becoming sophomore first and then graduated)
Here,
P(Who directly graduated from freshman) = 0.25
P(Who graduated by becoming sophomore first and then graduated) = P(Freshman -> Sophomore -> Graduate) + P(Freshman -> Sophomore -> Sophomore -> Graduate) + P(Freshman -> Sophomore -> Sophomore -> Sophomore -> Graduate) + .............
= 0.25 + 0.5 * [0.5 + 0.25 * 0.5 + 0.252 * 0.5 + ...]
= 0.25 + 0.52 * 1/(1 - 0.25)
= 0.25 + 0.52/0.75
= 0.5833
P(Freshman who will graduated) = 0.5833
Method II
P(A freshman will graduate) = 1 - P(A freshman that will quit)
P(Freshman will quit) = P(Quit when he is a freshman) + P(Quit when he become sophomore from a freshman)
= 0.25 + [0.50 * 0.25 + 0.50 * 0.50 * 0.25 + ...]
= 0.25 + 0.50 * 0.25 * 1/(1 - 0.25)
= 0.25 + 0.50 * 0.25 * 1/0.75
= 0.4167
so
P(A freshman will graduate) = 1 - 0.4167 = 0.5833