Question

About 5% of hourly paid workers in a region eam the prevailing minimum wage or less. A grocery chain offers discount rates to companies that have at least 30 employees who eam the prevailing minimum wage or less.

(a) Company A has 294 employees. What is the probability that Company A will get the discount?
(Round to four decimal places as needed.)

Answer 1

The probability that Company A will get the discount is 0.

To find the probability that Company A will get the discount, we need to calculate the percentage of employees earning the prevailing minimum wage or less.

Given that about 5% of hourly paid workers earn the prevailing minimum wage or less and Company A has 294 employees, we can find the number of employees who earn the prevailing minimum wage or less by multiplying the total number of employees by the percentage.

Number of employees earning the prevailing minimum wage or less = 294 x 5/100 = 14.7

Since the number of employees cannot be fractional, we can round up the number to the nearest whole number.

So, in this case, 15 employees earn the prevailing minimum wage or less.

Now, we need to check if Company A has at least 30 employees who earn the prevailing minimum wage or less.

Since Company A has 15 such employees, it does not meet the requirement to get the discount.

Therefore, the probability that Company A will get the discount is 0.