Question

You own a company that employs three salespeople, Quentin, Michael and Bubba. Quentin makes 30% of the sales, Michael 45%, and Bubba 25%. While they are all competent, they do not enjoy completing the paperwork on their sales as required by the SEC. Of the sales Quentin makes, he completes paperwork 90% of the time. When Michael makes a sale, he completes the paperwork 80% of the time. When Bubba makes a sale, he completes paperwork 85% of the time. You were recently fined by the SEC for this reason, and have instituted tough new policies on this manner. What is the probability that Bubba makes a sale and the paperwork on the sale is completed?

Answer 1

Probability that Bubba makes a sale and the paperwork on the sale is completed, P(B n CP) = 0.2125

Explanation:

Probability that Bubba makes a sale, P(B) = 0.25

Probability that Bubba completes the paperwork on his sale, P(CP) = 0.85

Probability that Bubba makes a sale and the paperwork on the sale is completed, P(B n CP) = 0.25 × 0.85 = 0.2125