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A company studied the number of lost-time accidents occurring at its Brownsville

ID: 3071699 • Letter: A

Question

A company studied the number of lost-time accidents occurring at its Brownsville, Texas, plant. Historical records show that 6% of the employees suffered lost-time accidents last year. Management believes that a special safety program will reduce such accidents to 5% during the current year. In addition, it estimates that 15% of employees who had lost-time accidents last year will experience a lost-time accident during the current year. Round your answers to three decimal places. a. What percentage of the employees will experience lost-time accidents in both years? b. What percentage of the employees will suffer at least one lost-time accident over the two-year period?

Explanation / Answer

Ans:

Given that

P(L)=0.06

P(C)=0.05

P(C/L)=0.15

a)P(both)=P(C and L)=P(C/L)*P(L)=0.15*0.06=0.009 or 0.9%

b)P(atleast one)=P(L or C)=P(L)+P(C)-P(L and C)

=0.06+0.05-0.009

= 0.101

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