Question

An airline is planning its staffing needs for the next year. If a new route is approved, it will hire 944 new employees. If a new route is not granted, it will hire only 189 new employees. If the probability that a new route will be granted is 0.34, what isthe expected number of new employees to be hired by the airline?The expected number of new employees to be hired is

Answer 1

we know that

the probability that a new route will be granted is 0.34

so

the probability that a new route will be not granted is 1-0.34=0.66

therefore

The expected value is equal to

EV=0.34(944)+0.66(189)

EV=445.7

therefore

The expected number of new employees to be hired is 446