Question

After reading a recent report revealing that workplace diversity can improve the development of ideas, Quantitative Industrial (QI) decides to hire 2 recent graduates to have a better age-profile in its workforce. They interview many candidates but have settled on 5 finalists for the position. They have ranked their choices from 1 to 5. Unbeknownst to them, each finalist has a certain probability of accepting their offer of $60,000 as the starting salary:

Candidate 1 -- 25%
Candidate 2 -- 50%
Candidate 3 -- 10%
Candidate 4 -- 0% or 100% if candidate 5 is also hired
Candidate 5 -- 50%

Required:
What types of probability we see from candidate 4.

Answer 1

Subjective

Conditional

Explanation:

The 0% probability of accepting the offer is a subjective probability, since it is derived from candidate 4's individual personal judgment without calculations.

As for the 100%, it is a conditional probability, since it is linked to the probability of another event also happening. It is that probability of candidate 4 accepting the offer, given that candidate 5 is also hired.