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A company studied the number of lost-time accidents occurring at its Brownsville, Texas, plant

Business

A company studied the number of lost-time accidents occurring at its Brownsville, Texas, plant. Historical records show that 8% of the employees had lost-time accidents last year. Management believes that a special safety program will reduce the accidents to 5% during the current year. In addition, it estimates that 15% of those employees having had lost-time accidents last year will have a lost-time accident during the current year.

  1. What percentage of the employees will have lost-time accidents in both years? When required, round the percent to three decimal places before converting to a percentage. For example, .8839 would be rounded to .884 and entered as 88.4.
  2. What percentage of the employees will have at least one lost-time accident over the two-year period? When required, round the percent to three decimal places before converting to a percentage. For example, .8839 would be rounded to .884 and entered as 88.4.

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a) Computatiojn of Percentage with Both year lost-time accident:

Last year lost-time accident = 8%

Both year lost-time accident = Last year lost-time accident*15%

= .08*15% 

Both year lost-time accident = 1.20%

 

b) Computation of Percentage with least one lost-time accident:

Percentage with least one lost-time accident = .08 + .05 - Last year lost-time accident*15%

= 0.13 -  .08*15% 

=0.13 - 1.20% 

Percentage with least one lost-time accident = 11.80%

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