Since the fall of 2008 millions of Americans have lost jobs

Since the fall of 2008, millions of Americans have lost jobs due to the economic meltdown. A recent study shows that unemployment has not impacted white-collar and blue-collar workers equally (Newsweek, April 20, 2009). According to the Bureau of Labor Statistics report, while the national unemployment rate is 8.5%, it is only 4.3% for those with a college degree. It is fair to assume that 27% of people in the labor force are college educated. You have just heard that another worker in a large firm has been laid off. What is the probability that the worker is college educated?

Solution

P(educated )=0.27

P(unemployed |educated) =0.043

we have to find P(educated | unemployed)=?

P(educated,unemployed)=0.043*0.27 =0.01161

P(unemployed) =0.085

now

Required prob= 0.01161/0.085 =0.137