A training institute contacts a company to provide specialized training to its employees. This training will sharpen their soft-skills and management skills. Interest shown by number of employees from the company: 1,000 Training fees per employee: Rs.30,000 The training institute conducted a mock test to check levels of employee. The employee Performance Ratings comes out to be:

Percentiles Range Probability of employee scoring the percentiles in the given range

50-59 0.10

60-74 0.20

75-85 0.40

86-95 0.25

96 and above percentile 0.05

The training institute has committed to pay Rs.4,000 per enrolled employee, to Company for CSR activities. The training institute has estimated its own cost to arrange the onsite training to be between Rs.18,00,000 to Rs.20,00,000.

To attract maximum employee to join the training, the institute claimed that with our training you are guaranteed to improve your skills and obtain 85 percentile and above if you dont get the promised results, we will refund your entire course fees. Perform Cost-benefit analysis to determine if the training institute will be at profit or loss with the claim they tend to make.