Each salesperson in a large department store chain is rated on their sales abili

Question

Each salesperson in a large department store chain is rated on their sales ability and their potential for advancement. The data for the 500 sampled salespeople are summarized in the following table. a. What is the probability that a salesperson selected at random bas above average sales ability? b. What is the probability that a salesperson selected at random will have an excellent potential for advancement given the person has below average sales ability? Suppose P({Head}) = 0.8, P({Tail}) = 0.2. Please note that the coin is biased. If you toss a coin three times (or three coins once), what is the probability of getting one head (i.e. the other two outcomes are tails)? Two heads (i.e. the third one is a tail)?

Explanation / Answer

(6)
(a)
Number of Salesperson who have sales ability above average are 45 + 60 + 45 = 150
Probability that a salesperson selected has above average sales ability = 150/500 = 0.3

(b)
Probability of below average sales ability P(BA) = (16+12+22)/500 = 0.1

P(E and BA) = 22/500 = 0.044

P(E|BA) = P(E and BA)/P(BA) = 0.044/0.1 = 0.44

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