Consider a situation where a worker has an ability level that is either low, moderate or high, each with a probability of 1/3. Pr(ability is high) = Pr(ability is moderate) = Pr(ability is low) = 1/3. The worker has the possibility to get an education prior to looking for a job. This is a discrete 0 or 1 decision. Assume that the worker does not get an education if his ability is low. However he gets an education when his ability is moderate or high.

In blank #1 enter the probability that an employer should assign to facing a low ability worker when the worker has an education.

In blank #2 enter the probability that an employer should assign to facing a high ability worker when the worker has an education.

(Enter either 1 or 0 or a decimal number such as 0.3.)