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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.
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%