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Q. 1

Expert-verified
Found in: Page 282

### Introductory Statistics

Book edition OER 2018
Author(s) Barbara Illowsky, Susan Dean
Pages 902 pages
ISBN 9781938168208

# Use the following information to answer the next five exercises: A company wants to evaluate its attrition rate, in other words, how long new hires stay with the company. Over the years, they have established the following probability distribution.Let X = the number of years a new hire will stay with the company.Let P(x) = the probability that a new hire will stay with the company x years.Complete Table 4.20 using the data provided.

$P\left(4\right)=0.10$

See the step by step solution

## Given information

A company wants to evaluate its attrition rate, in other words, how long new hires stay with the company. Over the years, they have established the following probability distribution.

Let X = the number of years a new hire will stay with the company.

Let P(x) = the probability that a new hire will stay with the company x years.

## Step 2: Explanation

if you sample N new hires (where N is large > 1000), the mean number of years they stay would be approx $2.43$ (this is following the Law of large numbers). that is,

$mean=\frac{0+1+2+3+5+6}{7}=2.43$

Therefore the expected value of $P\left(4\right)$ is calculated as

 x P(x) 0 0.12 1 0.18 2 0.3 3 0.15 4 0.1 5 0.1 6 0.05