B. 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. (iii) Determine the probability that a randomly chosen employee who has had

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B. 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 | 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.
(iii) Determine the probability that a randomly chosen employee who has had
an accident is office staff.
Transcribed Image Text:B. 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 | 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. (iii) Determine the probability that a randomly chosen employee who has had an accident is office staff.
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