A company studied the number of lost-time accidents occurring at
its Brownsville, Texas, plant. Historical records show that 10% of
the employees suffered lost-time accidents last year. Management
believes that a special safety program will reduce such accidents
to 3% during the current year. In addition, it estimates that 15%
of employees who had lost-time accidents last year will experience
a lost-time accident during the current year.
a. What percentage of the employee will
experience a lost-time accident in both years (to 1 decimal)?
b. What percentage of the employee will
experience a lost-time accident over the two-year period (to 1
decimal)?