Each year ratings are compiled concerning the performance of new
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 is 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.
a. Suppose you know that a company based in the United States manufactured a particular car. What is the probability that the car needs a warranty repair?
b. Suppose you know that a company based in the United States did not manufacture a particular car. What is the probability that the car needs a warranty repair?
c. Are need for a warranty repair and location of the company manufacturing the car independent?
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