SOLUTION: The probability that a trainee will retain with the company is 0.8. The probability that an employee earns more than Rs. 20,000 per year is 0.004. The probability that an employee

Algebra ->  Algebra  -> Probability-and-statistics -> SOLUTION: The probability that a trainee will retain with the company is 0.8. The probability that an employee earns more than Rs. 20,000 per year is 0.004. The probability that an employee       Log On

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Question 47502: The probability that a trainee will retain with the company is 0.8. The probability that an employee earns more than Rs. 20,000 per year is 0.004. The probability that an employee who was a trainee and remained with company or who earns more than Rs. 20,000 per year is 0.9
What is the probability that an employee earns more than Rs. 20,000 per year, given that he is a trainee who stayed with the company?

Answer by stanbon(48568) About Me  (Show Source):
You can put this solution on YOUR website!
The probability that a trainee will retain with the company is 0.8. The probability that an employee earns more than Rs. 20,000 per year is 0.004. The probability that an employee who was a trainee and remained with company or who earns more than Rs. 20,000 per year is 0.9
Prob(r)=0.8
Prob(>20K)=0.004
Prob(r or >20K) = 0.9
This is contradictory because
Prob (r OR >20K)=prob(r)+prob(>20K)-P(r AND >20K)
Then 0.9 = 0.8+0.004-P(r and >20K)
And P(r and >20K)=-0.096
But no Probability can be negative.
Are you sure you posted the 0.004 correctly?
Cheers,
Stan H.