Question: J D Power and Associates Initial Quality Study reports that the
J.D. Power and Associates’ Initial Quality Study reports that the industry-average problem rate for vehicles is 108 problems per 100 vehicles. The highest rated brand was Lexus, with a rate of just 84 problems per 100 vehicles. On the other hand, BMW’s Mini was reported as having 165 problems per 100 vehicles. Larry is on his way to pick up his brand-new Lexus. At the same time, Mark is on his way to pick up his brand-new Mini. What is the probability that Larry’s Lexus will have exactly 2 problems? What is the probability that Mark’s Mini will have no more than 1 problem? What is the probability that neither Larry nor Mark will have a problem with his new car?
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