Question

Suppose that a large corporation offers its employees two health plans: a 70/30 plan with high deductible and an 80/20 plan with low deductibles. Every employee has one plan or the other. Of all employees, 75% are production workers and 25% are administrative workers. Of all employees, 35% choose 70/30 plan. Of all production workers, 40% choose the 70/30 plan.

A. What is the probability that randomly selected employee will be administrative employee?

B. What is the probability that a randomly selected employee will either be an administrative worker or will choose the 80/20 plan?

C. What is the probability that a randomly selected employee will be a production worker who chooses the 70/30 plan?

D. What is the probability that a randomly selected employee will be an administrative worker who chooses 70/30 plan?

E. What is the probability that a randomly selected administrative worker will choose the 80/20 plan?

F. Which kind of worker is more likely to choose the 80/20 plan, a randomly selected production worker or randomly selected administrative worker?

G. Let P represent the event that a worker is a production worker, and let A represent the event that the worker is an administrative worker. Let L represent the event that the worker selects the 70/30 plan and let H represent the event that the worker selects the 80/20 plan. Write the meaning of P(P I H) in English

H. Write the meaning of P(A U L ) in English.

Answer 1