A manufacturing company is analyzing its accident record. The accidents fall into two categories: Minor—dealt with by first aider: Average cost k50 Major—hospital required. Average cost k1,000 The company has 1,000 employees, of which 180 are office staff and the rest work in the factory. The analysis shows that 10% of employees have an accident each year and 20% of accidents are major. It is assumed that an employee has more than one accident in a year. (i) Determine the expected total cost of accidents in a year. On further analysis it is discovered that a member of office staff has half the probability of having an accident relative those in the factory. (ii)Show that the probability that a given a member of office staff has an accident in a year is 0.0549.
A manufacturing company is analyzing its accident record. The accidents fall into
two categories:
Minor—dealt with by first aider: Average cost k50
Major—hospital required. Average cost k1,000
The company has 1,000 employees, of which 180 are office staff and the rest
work in the factory.
The analysis shows that 10% of employees have an accident each year and 20%
of accidents are major. It is assumed that an employee has more than one
accident in a year.
(i) Determine the expected total cost of accidents in a year.
On further analysis it is discovered that a member of office staff has half the
(ii)Show that the probability that a given a member of office staff has an
accident in a year is 0.0549.
(iii) Determine the probability that a randomly chosen employee who has had
an accident is office staff
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