Concept explainers
Whistle Blowers Although there is legal protectionfor “whistle blowers”—employees who report illegalor unethical activities in the workplace—it has beenreported that approximately 23% of those who reportedfraud suffered reprisals such as demotion or poor performanceratings. Suppose the probability that an employeewill fail to report a case of fraud is .69. Find the probabilitythat an employee who observes a case of fraudwill report it and will subsequently suffer some form ofreprisal.
The probability that a employee will report a fraud and subsequently suffer with some form of reprisal.
Answer to Problem 1RWYL
Explanation of Solution
Given:
Approximately 23% those who reported fraud, suffer with form of reprisal.
69% will fail to report a fraud.
Formula Used:
For any two independent events
Probability of not occurring an event A is given by
Calculation:
Let
Let
Therefore,
As
Hence, the probability that a employee will report a fraud and subsequently suffer with some form of reprisal is
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Chapter 4 Solutions
Introduction To Probability And Statistics
- College AlgebraAlgebraISBN:9781305115545Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning