Question

A marketing firm is considering making up to three new hires. Given its specific needs, the management feels that there is a 60% chance of hiring at least two candidates. There is only a 7% chance that it will not make any hires and a 10% chance that it will make all three hires.

a. What is the probability that the firm will make at least one hire? (Round your answer to 2 decimal places.)



b. Find the expected value and the standard deviation of the number of hires. (Round intermediate calculations to at least 4 decimal places. Round your final answers to 2 decimal places.)

Answer 1

a. The probability that the firm will make at least one hire is 0.97.

b. Let X be the number of hires. Then X can take on values 0, 1, 2, or 3. The expected value of X is E(X) = 2.1 and the standard deviation of X is σ = 0.7.