Care Insurance Company with 40 employees has a company picnic with two prize dra
ID: 3205400 • Letter: C
Question
Care Insurance Company with 40 employees has a company picnic with two prize drawings. The door prize uses sampling with replacement (i.e. if a name is selected from the drawing, it is placed back in the bag) so that employees have a chance to win multiple door prizes. The grand prize drawing uses sampling without replacement (i.e. if a name is drawn, it is set aside before the next name is drawn) because the employees are not allowed to win multiple grand prizes. Answer the following questions based on this scenario.
a) What is the probability that Jason, an employee, wins the first door prize? ___________________________
b) Jason wins the door prize. What is the probability that he will win the second door prize? _____________________________
c) There are 8 employees in the marketing department of Care Insurance. What is the probability that one of the members of the marketing department wins the first grand prize? _______________________________
d) If a member of the marketing department wins the first grand prize, what is the probability that another member of the marketing department wins the second grand prize? ________________________________
Explanation / Answer
a) as there are 40 employees ; hence probabilty of winning =1/40
therefore probability that Jason, an employee, wins the first door prize =1/40
b)as probabilty of winning second prize is independent of winning first prize;
hence probability that he will win the second door prize, given he won the first prize =1/40
c)probability that one of the members of the marketing department wins the first grand prize =8/40 =1/5
d)as there are 7 marketing ppl left out of 39 employee; if one of them wins grand prize.
if a member of the marketing department wins the first grand prize, probability that another member of the marketing department wins the second grand prize =7/39