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Gurmet Hotels (GH) is a chain of luxury hotels famous for hosting in-house high-end restaurants. The business model of this hotel chain is so focused

Gurmet Hotels (GH) is a chain of luxury hotels famous for hosting in-house high-end restaurants. The business model of this hotel chain is so focused on high-end cuisine that they operate their own chef school. Every year new chefs and sous-chefs are trained to the highest standards. The selection and training process is depicted in the figure below. The incoming applications are vetted in CV screening and 80% of these are discarded immediately. Then, candidates are summoned to one of the GH locations and must pass a practice exam - after this step, 50% of the applications are discarded, while the remaining 50% go on to receive additional training. Specifically, 30% of the candidates that passed the practice test are outstanding and are sent to chef-training, while the remaining 70% who did moderately well in the test are trained to be sous-chefs. Typically, 20% of the sous-chef-trained recruits turn out to be much better than expected, that they are sent to chef-training and are ultimately hired as chefs

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