Refer to Example 3.5 (pp. 164–165). Recall that USA Today found that of all U.S. firms that use diversity training, 38% state that their primary reason for using it is to stay competitive.

a. What is the probability that in a sample of two firms that use diversity training, both primarily use it to stay competitive?

b. What is the probability that in a sample of 10 firms that use diversity training, all 10 primarily use it to stay competitive?

Data from Example 3.5

Diversity training of employees is the latest trend in U.S. business. USA Today reported on the primary reasons businesses give for making diversity training part of their strategic planning process. The reasons are summarized in Table 3.2. Assume that one business is selected at random from all U.S. businesses that use diversity training, and the primary reason is determined.

Data from Table 3.2

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Table 3.2 Primary Reasons for Diversity Training Reason Comply with personnel policies (CPP) Increase productivity (IP) Stay competitive (SC) Social responsibility (SR) Other (O) Total Percentage 7 47 38 4 4 100