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CFA Level 1
Quantitative Methods

Conditional Probability of Job Satisfaction

Very Hard Probability Concepts Conditional Probability

A company conducts a study to understand the relationship between its employees and job satisfaction. It finds that out of 200 employees, 150 are satisfied with their jobs and 120 of those are also satisfied with their work-life balance. Additionally, 70 employees are dissatisfied with their jobs, and all of these employees also reported dissatisfaction with their work-life balance.

If we randomly select an employee who is satisfied with their work-life balance, what is the probability that this employee is also satisfied with their job?

Let:

$A$ = event that an employee is satisfied with their job.

$B$ = event that an employee is satisfied with their work-life balance.

The task is to calculate the conditional probability $P(A|B)$.

Hint

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