Question

Question Help aid-off workers who become entrepreneurs because they cannot find meaningful employment with another company are known as entrepreneurs by necessity. A major national newspaper reports that these entrepreneurs by necessity are less likely to grow into large business than are entrepreneurs by choice. This article states that 73% of entrepreneurs in a certain area are entrepreneurs by choice and 27% are entrepreneurs by necessity. Only 5% of entrepreneurs by necessity expect their new business to employ 20 or more people within five years, whereas 17% of entrepreneurs by choice expect to employ at least 20 people within five years. If an entrepreneur is selected at random and that individual expects that his or her new business will employ 20 or more people within five years, what is the probability that this individual is an entrepreneur by choice? The probability is

Answer 1

Probability that individual will employ 20 or more expects that his or her new business people within five year. = P( by choice and expect to employ 20 or more + by necessity and expect to employ 20 or more) s 0.73X0-17 + 0.97 X0.05 - 0.1376 Probability that this individual is an entrepreneur by choice, given expects that his of new business will employ 20 or more people within five year. =P (by choice and expect to employ 20 of more) 11 P (expect to employ 20 or more) 0.73 X017 - 0.1376 - 0.90189 = [0.9019) Ang