Homework Answers
We are given the conditional probability of the fitm having one to four employees given that it is a construction firm.
We will use the formula for conditional probability to arrive at the required probability
P(A|B)=P(A intersection B)/P(B)
Here A event is the firm having one to four employees
B is that the firm is a construction firm
Therefore, required probability is A intersection B
Which can be arrived from multiplying the conditional probability (0.6933)to the probability that the firm is a construction firm (0.1239), ie
=0.6993*0.1239 = 0.0866
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