Every Current Applicant for a Position in the Marketing Department

question 120

Short Answer

Every current applicant for a position in the marketing department of Company A is given a 10-question test on interpretation of findings from statistical analyses. Individuals are rated on three levels based on their scores: Excellent (9-10 correct), Average (5-8 correct), and Poor (fewer than 5 correct). Historically, the probability of an individual scoring Excellent = .38, Average = .52, and Poor = .10. Also, the company knows that 90 percent of applicants who score Excellent are offered a position, 75 percent of applicants who score Average are offered a position, and 35 percent of the applicants who score Poor are offered a position. What is the probability that an individual who is offered a position has an Average score?

---

Definitions:

Returns To Scale

An economic concept describing how output changes in response to a proportional change in all inputs; indicating constant, increasing, or decreasing returns to scale.

Production Function

A mathematical equation that describes the maximum amount of output that can be obtained from a given set of inputs.

Output

The amount of goods or services produced by a business, industry, or economy in a given period.

Production Isoquants

Curves that represent different combinations of inputs that produce the same level of output, illustrating the trade-offs in production processes.