You own a company that employs three salespeople, Quentin, Michael and Bubba. Qu

Question

You own a company that employs three salespeople, Quentin, Michael and Bubba. Quentin makes 30% of the sales, Michael 45%, and Bubba 25%. While they are all competent, they do not enjoy completing the paperwork on their sales as required by the SEC. Of the sales Quentin makes, he completes paperwork 90% of the time. When Michael makes a sale, he completes the paperwork 80% of the time. WhenBubba makes a sale, he completes paperwork 85% of the time. You were recently fined by the SEC for this reason, and have instituted tough new policies on this manner.

What is the probability that Bubba makes a sale and the paperwork on the sale is completed?

Explanation / Answer

Here given that Quentin makes 30% of sales and and he completes 90% of paperwork for the sales he made. Therfore the percentage of sales with paperwork out of total sales is

0.3*0.9= 0.27

Given that Michael makes 45% of sales and he completes 80% of paperwork for the sales he made. Therefore the percentage of sales with paperwork out of total sales is

0.45*0.8 = 0.36

Bubba makes 25% of sales and he completes 85% of paperwork for the sales he make. Therefore the percentage of sales with paperwork out of total sales is

0. 25*0.85 = 0.2125

The total percentage of sales with paperwork is 0.27+0.36+0.2125 = 0.8425

I.e 84.25% of sales made have the proper paperwork

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