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Who\'s the boss? The 2016 State of Women-Owned Businesses Report commissioned by

ID: 3063300 • Letter: W

Question

Who's the boss? The 2016 State of Women-Owned Businesses Report commissioned by American Express (www.womenable.com/70/the-state-of-women-owned businesses-in-the-u.s.:-2016) says that, excluding large, publicly traded firms, women-owned firms make up 38% of the privately held firm population, a number that doubled since 1997. You call some firms doing business locally assuming that the national percentage is true in your area. a) What's the probability that the first 3 you call are all owned by women? a firm that is owned by a woman? by a woman. What's the probability that your next call b) What's the probability that none of your first 4 calls finds c) Suppose none of your first 5 calls found a firm owned does?

Explanation / Answer

a) P(a firm is owned by woman) = 0.38

P(first 3 you call are owned by women) = 0.383

= 0.0549

b) P(none of the first 4 calls finds a firm owned by a woman) = (1-0.38)4

= 0.1478

c) P(next call find a firm owned by woman | none of the first 4 calls found a firm owned by a woman) = 0.38

Since the calls are independent, the outcome on the previous trials will no affect the outcome of the next trial.