Question
Mt. Kinley is a strategy consulting firm that divides its consultants into three classes: associates, managers, and partners. The firm has been stable in size
Mt. Kinley is a strategy consulting firm that divides its consultants into three classes: associates, managers, and
partners. The firm has been stable in size for the last 20 years, ignoring growth opportunities in the 90s, but also
not suffering from a need to downsize in the recession at the beginning of the 21st century. Specifically, there have
been--- and are expected to be--- 300 associates, 100 managers, and 30 partners.
The work environment at Mt. Kinley is rather competitive. After five years of working as an associate, a consultant goes either up or out; that is, becomes a manager or is dismissed from the company. Similarly, after another five years, a manger either becomes a partner or is dismissed. The company recruits MBAs as associate consultants; no hires are made at the manager or partner level. A partner stays with the company for another 10 years (a total of 20 years with the company).
a) How many new associates are dismissed every year before becoming a manager?
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