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Chris M., M.S.W. Social Work
Category: Homework
Satisfied Customers: 2786
Experience:  Master's Degree, strong math and writing skills, experience in one-on-one tutoring (college English)
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# Using your states current unemployment rate, what is the probability

### Resolved Question:

Using your state’s current unemployment rate, what is the probability that you will be able to find a new job within 6 months after being laid off?The unemployment rate is 12%
Submitted: 6 years ago.
Category: Homework
Expert:  Chris M. replied 6 years ago.

Hello Customer,

Unemployment rate = 0.12

Employment rate = 1 - Unemployment rate = 0.88

The probability (p) of finding a job in one month is equal to the employment rate,

so p = 0.88

The probability of not finding a job in six months = (0.12) ^6

The probability of finding a job within 6 months = 1 - the probability of not finding a job in six months

= 1 - (0.12 ^6) = 0.999997

=99.9997%

Hope this helps!

Edited by Chris M. on 1/18/2011 at 3:25 AM EST
Customer: replied 6 years ago.
<p>Looked at wrong state. Rate should be 4.5</p>
Expert:  Chris M. replied 6 years ago.