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 categorized according to whether a car needs warranty-related 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
a. Needs a warranty repair?
b. Needs a warranty repair and was manufactured by a U. S.- based company?
c. Needs a warranty repair or was manufactured by a U. S.- based company?
d. Needs a warranty repair or was not manufactured by a U. S.- based company?


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  • CreatedJuly 16, 2015
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