Answer to Question #229512 in Statistics and Probability for Mea K

Question

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) 

Answer 1

Let (G) represent graduates and NG represent non graduates

0.6 ⟨ for graduates

0.4 ⟨ for non graduates.

Successful (G)

(0.65* 0.6=0.39)

Not successful (G)

(0.35*0.6 =0.21)

Successful (NG)

(0.55*0.4=0.22)

Not successful (NG)

(0.45*0.4=0.18)