Question

A company studied the number of lost-time accidents occurring at its Brownsville, Texas, plant. Historical records show that 10% of the employees suffered lost-time accidents last year. Management believes that a special safety program will reduce such accidents to 8% during the current year. In addition, it estimates that 15% of employees who had lost-time accidents last year will experience a lost-time accident during the current year.

a. What percentage of the employee will experience a lost-time accident in both years (to 1 decimal)?

  

b. What percentage of the employee will experience a lost-time accident over the two-year period (to 1 decimal)?

Answer 1

Solution:

a)

Let A denote the event that the employee suffers lost-time accidents during the last year .

Let B denote the event that the employee suffers lost-time accidents during the current year.

The percentage of the employee will experience a lost-time accident in both years calculate as:

Therefore, the probability that an employee will experience a lost-time accident in both years is about to 0 (to 1 decimal)

B)

The percentage of the employee will experience a lost-time accident over the two-year period calculated as

Therefore, the probability that an employee will experience a lost-time accident over the two-year period is 0.1 (to 1 decimal)