Each year, ratings are compiled concerning the performance of new cars during the first 90 days of

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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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Business Statistics A First Course

ISBN: 9780321979018

7th Edition

Authors: David M. Levine, Kathryn A. Szabat, David F. Stephan

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