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 4% 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.
What is the probability an employee will experience a lost-time accident in both years (to 3 decimals)?
What is the probability an employee will experience a lost-time accident over the two-year period (to 3 decimals)?