Answer to Question #229443 in Statistics and Probability for Mea K

Question #229443

Research has it that 60% of new business ventures are started by graduates, while the remaining 40% are started by non-graduates. Also, 65% of new business ventures started by graduates are successful, while only 55% of thoe started by non-graduates are successful. present the information using a probability diagram (a tree diagram)

Expert's answer

Graduates (G) Non-graduates (NG)

(0.6) (0.4)

/ \ / \

Successful G Not Successful G

(0.65×0.6 = 0.39) (0.35×0.6 = 0.21)

Successful NG Not Successful NG

(0.55×0.4 = 0.22) (0.45×0.4 = 0.18)