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60% of the employees of a company are college graduates. Of these, 10% are in sales. Of the employees who did not graduate from college, 80% are in sales. The probability that an employee selected at random is in sales, is:

60% of the employees of a company are college graduates. Of these, 10% are in sales. Of the employees who did not graduate from college, 80% are in sales. The probability that an employee selected at random is in sales, is: Correct Answer 0.38

Given

P(A) = 0.60

P(B/A) = 0.10 

P(B/A)’ = 0.80

Concept:

P(A | B) ⋅ P(B) = P(B | A) ⋅ P(A) 

Calculation:

Let A be the event : the employees are graduate

Let B be the event : the employees are in sales

⇒ P(B) = P(A).P(B/A) + P(A’). P(B/A)’

⇒ 0.60 × 0.10 + 0.40 ×  0.80 

∴ The probability that an employee selected at random is in sales, is 0.38

Important Points

Probability always lies between 0 to 1 

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