Each year, ratings are compiled concerning the performance of new cars during th

Question

Each year, ratings are compiled concerning the performance of new cars during the first 90 days of use. Suppose that the cars have been categorised according to whether a car needs warrantyrelated repair (yes or no) and the country in which the company manufacturing a car is based (United States or not United States). Based on the data collected, the probability that the new car needs a warranty repair is 0.04, the probability that the car was manufactured by a U.S.-based company is 0.60, and the probability that the new car needs a warranty repair and was manufactured by a U.S.-based company is 0.025. Construct a contingency table to evaluate the probabilities of a warranty-related repair. What is the probability that a new car selected at random

Explanation / Answer

P(Warranty and US based) =0.025

P(Warranty and non US based) =0.04-0.025=0.015

P(not warranty related and US based) =0.6-0.025=0.575

hence below is contingency table:

please reply for any subparts

US based not US based total not warranty related 0.575 0.385 0.96 waranty related 0.025 0.015 0.04 total 0.6 0.4 1

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