Question
You have been contacted to give professional advice to an organization.The organization has repeatedly missed their sales mark.To meet their sales mark, the president considered
You have been contacted to give professional advice to an organization.The organization has repeatedly missed their sales mark.To meet their sales mark, the president considered making each employee undergo an expensive training program.To determine whether the training program would actually improve employee performance, the president asked several other employees from upper management to estimate the probability that the training program would improve employee performance.On average, they estimated that the training program had a 95 percent chance of improving employee performance.From these estimates, the president suggested that the company should make each employee undergo an expensive training program.
After hearing about the president's plan, a lower-level manager decided to investigate the expensive training program on their own.To do so, the lower-level manager contacted other organizations that underwent a similar training program.After obtaining 20 responses, the lower-level manger discovered that only two organizations reported that the training program improved employee performance.From this, the lower-level manager decided that the company shouldnotmake each employee undergo the expensive training program.
Lastly, both the president and the lower-lever manager determined that, even if the training succeeded, then the company would have a 75 percent chance of meeting their sales mark.
Question 1: What is the probability of the training being successful AND the company meeting their sales mark when using the president's estimate of probability?
Question 2: What is the probability of the training being successful AND the company meeting their sales mark when using the lower level manager's estimate of probability?
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