THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING:
A company hires management trainees for entry level sales positions.Past experience indicates that only 10% will still be employed at the end of nine months.Assume the company recently hired six trainees.
-What is the probability that three of the trainees will still be employed at the end of nine months?
A)0.0012
B)0.0146
C)0.0415
D)0.0446

Question

Quizplus · Accepted Answer

This problem can be solved using the binomial distribution formula:

P(X=k) = nCk * p^k * (1-p)^(n-k)

Where:
n = number of trials (in this case, 6 trainees)
k = number of successes (in this case, 3 trainees still employed)
p = probability of success on each trial (in this case, 0.1)

Plugging in these values, we get:

P(X=3) = 6C3 * 0.1^3 * 0.9^3
P(X=3) = 20 * 0.001 * 0.729
P(X=3) = 0.0146

Therefore, the probability that three of the trainees will still be employed at the end of nine months is 0.0146. The best choice is B.