Question

In: Statistics and Probability

A large corporation organized a ballot for all its workers on a new bonus plan. It...

A large corporation organized a ballot for all its workers on a new bonus plan. It was found that 65% of all night-shift workers favored the plan and that 40% of all female workers favored the plan. Also, 50% of all employees are night shift workers and 30% of all employees are women. Finally, 20% of all night-shift workers are women. question E) e. If 50% of all male employees favor the plan, what is the probability that a randomly chosen employee both does not work the night shift, and does not favor the plan.

Solutions

Expert Solution

Let N denote the event that an employees are night shift worker.

Similarly, let M and W be the event that employee is male or female respectively.

Given,

P(Favored | N) = 0.65

P(Favored | W) = 0.4

P(N) = 0.5

P(W) = 0.3

P(N and W) = 0.2

P(Favored | M) = 0.5

We need to find,

P(Does not Favor and No Night Shift)

P(No Night Shift) = 1 - P(N) = 1 - 0.5 = 0.5

P(M) = 1 - P(W) = 1 - 0.3 = 0.7

By law of total probability,

P(Favored) = P(Favored | M) P(M) + P(Favored | W) P(W)

= 0.5 * 0.7 + 0.4 * 0.3

= 0.47

P(Does not Favor) = 1 - P(Favored) = 1 - 0.47 = 0.53

P(Favored | N) = 0.65

P(Does not Favor | N) = 1 - 0.65 = 0.35

By Bayes theorem,

P(N | Does not Favor) = P(Does not Favor | N) * P(N) / P(Does not Favor)

= 0.35 * 0.5 / 0.53

= 0.3301887

P(No Night Shift | Does not Favor) = 1 - P(N | Does not Favor) = 1 - 0.3301887 = 0.6698113

By definition of conditional probability,

P(No Night Shift | Does not Favor) = P(Does not Favor and No Night Shift) / P(Does not Favor)

=> P(Does not Favor and No Night Shift) = P(No Night Shift | Does not Favor) * P(Does not Favor)

= 0.6698113 * 0.53

= 0.355


Related Solutions

Crane Corporation recently announced a bonus plan to reward the manager of its most profitable division....
Crane Corporation recently announced a bonus plan to reward the manager of its most profitable division. The three divisional managers are to decide which performance measure will be used to evaluate profitability. Crane Corporation requires a 10% minimum return on investment. The following information is available for the year just ended. Division Gross Book Value of Assets Divisional Operating Income Ashton $800,000 $94,800 Drye 749,800 91,810 Poole 441,000 58,330 (a) Calculate return on investment. (Round ROI to 2 decimal places,...
A company attempts to evaluate the potential for a new bonus plan by selecting a sample...
A company attempts to evaluate the potential for a new bonus plan by selecting a sample of 4 salespersons to use the bonus plan for a trial period. The weekly sales volume before and after implementing the bonus plan is shown below. (For the following matched samples, let the difference "d" be d = after - before.) Weekly Sales Salesperson Before After 1 48 44 2 48 40 3 38 36 4 44 50 a. State the hypotheses. b. Compute...
A company attempts to evaluate the potential for a new bonus plan by selecting a sample...
A company attempts to evaluate the potential for a new bonus plan by selecting a sample of 4 salespersons to use the bonus plan for a trial period. The weekly sales volume before and after implementing the bonus plan is shown below. (For the following matched samples, let the difference "d" be d = after - before.) Weekly Sales Salesperson Before After 1 48 44 2 48 40 3 38 36 4 44 50 a. State the hypotheses. b. Compute...
Springfield Company offers a bonus plan to its employees and the amount of the employee bonuses...
Springfield Company offers a bonus plan to its employees and the amount of the employee bonuses for the current year is estimated to be $966,000 to be paid during January of the following year. The journal entry on December 31 to record the bonuses is: Debit Estimated Bonus Payable $966,000; credit Cash $966,000. Debit Employee Bonus Expense $966,000; credit Prepaid Employee Bonus $966,000. Debit Employee Bonus Expense $966,000; credit Bonus Payable $966,000. Debit Unearned Bonuses $966,000; credit Bonus Payable $966,000....
INFERENCES ABOUT THE DIFFERENCES ENGINEERS IN A LARGE CORPORATION ARE CONCERNED ABOUT THE BONUS AMOUNT CLAIMING...
INFERENCES ABOUT THE DIFFERENCES ENGINEERS IN A LARGE CORPORATION ARE CONCERNED ABOUT THE BONUS AMOUNT CLAIMING THAT THE AMOUNDS DECREASED COMPARED TO THE PREVIOUS YEAR. A SAMPLE OF n = 9 ENGINEERS WAS SELECTED AT RANDOM AND THEIR BONUS AMOUNTS FOR TWO LAST YEARS (2015 AND 2016) WERE SUMMARIZED. THE SUMMARIES SHOW THAT: (X-BAR) = (SAMPLE MEAN FOR 2015) = 4,880 (Y-BAR) = (SAMPLE MEAN FOR 2016) = 4,140 AND S = (SAMPLE SD FOR DIFFERENCES) = 1,200 (A) AT...
A large telecommunications corporation is planning to issue a new scheme involving a revision of its...
A large telecommunications corporation is planning to issue a new scheme involving a revision of its pay scheme. The scheme involves plans to raise the basic salary and reduce overtime payment. It is believed that there might be different views about the scheme among staff — namely between general support staff and technical staff who are more frequently required to work overtime. The percentages of the two categories of staff to the whole corporation are about 80% and 20% respectively....
The ECN Corporation is an all equity firm and its current financial manager plan to dissolve...
The ECN Corporation is an all equity firm and its current financial manager plan to dissolve the firm in two years. The corporation has announced that it will pay $0.6 per share dividend to shareholders in one year. In two years, ECN will pay a liquidating dividend of $60 per share. The required return on ECN stock is 18%. Lily owns 10,000 shares in the company. What will Lily’s dividend income be this year if she uses homemade dividends to...
The following is a summary of all relevant transactions of Martinez Corporation since it was organized...
The following is a summary of all relevant transactions of Martinez Corporation since it was organized in 2017. In 2017, 14,000 shares were authorized and 7,000 shares of common stock ($50 par value) were issued at a price of $57. In 2018, 1,100 shares were issued as a stock dividend when the stock was selling for $60. 290 shares of common stock were bought in 2019 at a cost of $64 per share. These 290 shares are still in the...
Nicole organized a new corporation. The corporation began business on April 1 of year 1. She...
Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: (Leave no answer blank. Enter zero if applicable.) Expense Date Amount Attorney fees for articles of incorporation February 10 $ 32,000 March 1 – March 30 wages March 30 4,500 March 1 – March 30 rent March 30 2,000 Stock issuance costs April 1 20,000 April 1 – May 30 wages May 30 12,000...
Nicole organized a new corporation. The corporation began business on April 1 of year 1. She...
Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: (Leave no answer blank. Enter zero if applicable.) Expense Date Amount Attorney fees for articles of incorporation February 10 $ 37,000 March 1 – March 30 wages March 30 5,350 March 1 – March 30 rent March 30 2,500 Stock issuance costs April 1 31,000 April 1 – May 30 wages May 30 13,375...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT