Since the fall of 2008, millions of Americans have lost jobs due to the economic

Question

Since the fall of 2008, millions of Americans have lost jobs due to the economic meltdown. A recent study shows that unemployment has not impacted white-collar and blue-collar workers equally (Newsweek, April 20, 2009). According to the Bureau of Labor Statistics report, while the national unemployment rate is 8.5%, it is only 4.3% for those with a college degree. It is fair to assume that 27% of people in the labor force are college educated. You have just heard that another worker in a large firm has been laid off. What is the probability that the worker is college educated?

Explanation / Answer

P(educated )=0.27

P(unemployed |educated) =0.043

we have to find P(educated | unemployed)=?

P(educated,unemployed)=0.043*0.27 =0.01161

P(unemployed) =0.085

now

Required prob= 0.01161/0.085 =0.137

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