Question

In: Statistics and Probability

A recent study shows that unemployment does not impact males and females in the same way...

A recent study shows that unemployment does not impact males and females in the same way (Newsweek, April 20, 2009). According to a Bureau of Labor Statistics report, 8.5% of those who are eligible to work are unemployed. The unemployment rate is 8.8% for eligible men and only 7.0% for eligible women. Suppose 52% of the eligible workforce in the U.S. consists of men.

a. You have just heard that another worker in a large firm has been laid off. What is the probability that this worker is a man? (Do not round intermediate calculations. Round your answer to 3 decimal places.)


b. You have just heard that another worker in a large firm has been laid off. What is the probability that this worker is a woman? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

Solutions

Expert Solution

Answer:

Given that:

According to a Bureau of Labor Statistics report, 8.5% of those who are eligible to work are unemployed. The unemployment rate is 8.8% for eligible men and only 7.0% for eligible women. Suppose 52% of the eligible workforce in the U.S. consists of men.

a. You have just heard that another worker in a large firm has been laid off. What is the probability that this worker is a man?

If a worker in a firm is laid off, the probability that the worker is a male is given by P(M/U) as

Therefore the probability that the worker is a male is

b. You have just heard that another worker in a large firm has been laid off. What is the probability that this worker is a woman?

If a worker in a firm is laid off, the probability that the worker is a male is given by P(F/U) as

Therefore the probability that the worker is a male is


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