Each year, ratings are compiled concerning new cars during the first 90 days of
ID: 3440742 • Letter: E
Question
Each year, ratings are compiled concerning new cars during the first 90 days of use. Cars are categorized according to whether a car needs warranty related repairs (yes or no)and the country in which the company manufacturing the car is based. (US based, or overseas.) The probability is that the car needs a warranty related repair is 0.4, the probability the car was manufactured by a US based company is 0.60, and the proabability that the car needs warranty related repairs and was manufactured by a US 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 ramdom:
a. Needs a warranty related repair?
b. Needs a warranty related repair and was manufactured by a US based company?
c. Needs a warranty related repair, or was manufactured by a US based comoany?
d. Needs a warranty repair or was not manufactured by a US based company
Explanation / Answer
a)
Consider the table:
P(Yes) = 0.4 [answer]
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b)
P(Yes, and US) = 0.025 [answer]
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c)
P(Yes or US) = 0.025 + 0.375 + 0.575 = 0.975 [answer]
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d)
P(Yes or Overseas) = 0.025 + 0.375 + 0.025 = 0.425 [answer]
US Overseas Yes 0.025 =0.4-0.025 = 0.375 No =0.60-0.025 = 0.575 =1-0.025-0.575-0.375 = 0.025Related Questions
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