You are interviewing a candidate who has failed the test

Reference no: EM13638310

The personnel department of a particular company has observed that 30% of the people the company hires are dismissed within a year because they are unable to perform adequately. To reduce the amountof turnover, the company decides to administer a test to all applicants. Data collected over several years suggest that 80% of new hires who remain with the company pass the test, and 90% of
new hires who are dismissed fail the test.

a: What fraction of new hires pass the test?

b: What fraction of new hires who pass the test will be dismissed within a year?

c: You are interviewing a candidate who has failed the test, 0but you decide to hire the candidate anyway. What is the probability that this person will be with the company 1 year from now?

Reference no: EM13638310

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