Probability of Salesperson with Below Average Sales Ability and Fair Potential for Advancement | CFA Level 1 Exam Preparation

Below Average Sales Ability and Fair Potential for Advancement

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Question

Each salesperson in a large department store chain is rated either below average, average, or above average with respect to sales ability. Each salesperson is also rated with respect to his or her potential for advancement either fair, good, or excellent. These traits are the 500 salespeople were cross classified into the following table.

Sales Ability Potential for Advancement

Fair Good Excellent -

Below Average 161222 -

Average 456045 -

Above Average 9372135 -

What is the probability that a sales person selected at random will have below average sales ability and fair potential for advancement?

Answers

Explanations

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A. B. C. D. E.

E

prob. of selecting a below average person: (16 + 12 + 22)/500 = 1/10. Prob. of selecting fair potential amongst those in the below average group: 16/50 = 8/25.

Therefore 1/10*8/25 = 4/125.

To determine the probability that a salesperson selected at random will have below average sales ability and fair potential for advancement, we need to consider the number of salespeople who fall into that specific category and divide it by the total number of salespeople.

From the table given, we can see that the number of salespeople with below average sales ability and fair potential for advancement is 16.

To calculate the total number of salespeople, we sum up the numbers in the table:

161 + 222 + 456 + 45 + 937 + 2 + 135 = 1958

Now, we can divide the number of salespeople with below average sales ability and fair potential for advancement (16) by the total number of salespeople (1958):

16 / 1958 ≈ 0.00818

Therefore, the probability that a salesperson selected at random will have below average sales ability and fair potential for advancement is approximately 0.00818.

However, none of the given answer choices matches this result. It seems there might be an error in the provided answers or in the data provided.

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