Question

Companies use employee training for various reasons, including employee loyalty, certification, quality, and process improvement. In a national survey of companies, BI Learning Systems reported that 56% of the responding companies named employee retention as a top reason for training. Suppose 38% of the companies replied that they use training for process improvement and for employee retention. In addition, suppose that of the companies that use training for process improvement, 89% use training for employee retention. A company that uses training is randomly selected. a. What is the probability that the company uses training for employee retention and not for process improvement

Answer 1

0.3081 = 30.81% probability that the company uses training for employee retention and not for process improvement

Explanation:

56% employee retention.

38% for process improvement. Of those, 89% for employee retention.

a. What is the probability that the company uses training for employee retention and not for process improvement

The 56% is composed by:

x of 100 - 38 = 72%(not for process improvement)

89% of 38%(for process improvement).

We want to find x. So

`0.72x + 0.89*0.38 = 0.56`

`0.72x = 0.56 - 0.89*0.38`

`x = (0.56 - 0.89*0.38)/(0.72)`

`x = 0.3081`

0.3081 = 30.81% probability that the company uses training for employee retention and not for process improvement