SOLUTION: A consumer goods company recruits several graduating students from universities each year. Concerned about the high cost of training new employees, the company instituted a review

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Question 1177086: A consumer goods company recruits several graduating students from universities each year. Concerned about the high cost of training new employees, the company instituted a review of attrition among new recruits. Over five years, 30% of new recruits came from a local university, and the balance came from a more distant universities. Of the new recruits, 20% of those who were students from a local university resigned within two years, while 45% of other students resigned. Given that a student resigned within two years, what is the probability that she hired from
a) a local university?
b) a more distant university?

Found 2 solutions by CPhill, ikleyn:
Answer by CPhill(1959) About Me  (Show Source):
You can put this solution on YOUR website!
Absolutely, let's break down this problem using Bayes' Theorem.
**Understanding the Problem**
* **Events:**
* L: Recruited from a local university.
* D: Recruited from a distant university.
* R: Resigned within two years.
* **Given Probabilities:**
* P(L) = 0.30 (30% from local)
* P(D) = 0.70 (70% from distant)
* P(R|L) = 0.20 (20% of local resigned)
* P(R|D) = 0.45 (45% of distant resigned)
**What We Need to Find**
* a) P(L|R): Probability of being from a local university given resignation.
* b) P(D|R): Probability of being from a distant university given resignation.
**Applying Bayes' Theorem**
Bayes' Theorem states: P(A|B) = [P(B|A) * P(A)] / P(B)
In our case:
* P(L|R) = [P(R|L) * P(L)] / P(R)
* P(D|R) = [P(R|D) * P(D)] / P(R)
**Calculating P(R) (Total Probability of Resignation)**
We need to find the overall probability of resignation, P(R). We can do this using the law of total probability:
* P(R) = P(R|L) * P(L) + P(R|D) * P(D)
* P(R) = (0.20 * 0.30) + (0.45 * 0.70)
* P(R) = 0.06 + 0.315
* P(R) = 0.375
**Solving for a) P(L|R)**
* P(L|R) = [P(R|L) * P(L)] / P(R)
* P(L|R) = (0.20 * 0.30) / 0.375
* P(L|R) = 0.06 / 0.375
* P(L|R) = 0.16
**Solving for b) P(D|R)**
* P(D|R) = [P(R|D) * P(D)] / P(R)
* P(D|R) = (0.45 * 0.70) / 0.375
* P(D|R) = 0.315 / 0.375
* P(D|R) = 0.84
**Answers**
* a) The probability that a student who resigned within two years was hired from a local university is 0.16 or 16%.
* b) The probability that a student who resigned within two years was hired from a distant university is 0.84 or 84%.

Answer by ikleyn(52781) About Me  (Show Source):
You can put this solution on YOUR website!
.
A consumer goods company recruits several graduating students from universities each year.
Concerned about the high cost of training new employees, the company instituted a review
of attrition among new recruits. Over five years, 30% of new recruits came from a local
university, and the balance came from a more distant universities. Of the new recruits,
20% of those who were students from a local university resigned within two years,
while 45% of other students resigned. Given that a student resigned within two years,
what is the probability that she hired from
a) a local university?
b) a more distant university?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


        Below is a simple and straightforward solution.


Let X be the total number of students under consideration.


Of them, 0.3*X are from local university; 0.7*X are from distant universities.


The number of students from local university, who were resigned, is 0.2*0.3*X.


The number of students from distant universities, who were resigned,  is 0.45*0.7*X.


The total number of students, who were resigned, is  (0.2*0.3*X + 0.45*0.7*X).



Question (a) asks about the ratio 0.2*0.3*X  to this sum  (0.2*0.3*X + 0.45*0.7*X).


So, ANSWER to question (a) is  

    P(A) = %280.2%2A0.3%2AX%29%2F%280.2%2A0.3%2Ax+%2B+0.45%2A0.7%2AX%29 = cancel X and calculate = 

         = %280.2%2A0.3%29%2F%280.2%2A0.3+%2B+0.45%2A0.7%29 = 0.16.



Question (b) asks about the ratio 0.45*0.7*X  to the sum  (0.2*0.3*X + 0.45*0.7*X).


So, ANSWER to question (b) is  

    P(b) = %280.45%2A0.7%2AX%29%2F%280.2%2A0.3%2Ax+%2B+0.45%2A0.7%2AX%29 = cancel X and calculate = 

         = %280.45%2A0.7%29%2F%280.2%2A0.3+%2B+0.45%2A0.7%29 = 0.84.



Notice that the sum  0.16 + 0.84 is equal to 1, or 100%, which confirms our calculations.

Solved.

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                Post-solution notice


Notice that my solution is simpler than what by @CPhill, and it does not refer to other theorems:
it is STRAIGHTFORWARD.

If a student solves the problem by the method, shown in the post by @CPhill, it means and it clearly  highlight%28highlight%28shows%29%29
that the student solves the problem by touch, following and repeating the recipes from others
like a woodpecker and without his or her own understanding.

If a student solves the problem by the method from this my post, it means and it clearly  highlight%28highlight%28shows%29%29
that the student understands everything from scratch to the end, and is able to think on his or her own.

Actually, a good level student should write these calculation formulas in one breath,
based on his or her own common sense. It is a sign and a signal of full understanding,
it is a sign of achieving a good level, and it is what I want to teach you.