Question: Yearly automobile inspections are required for residents of the state
Yearly automobile inspections are required for residents of the state of Pennsylvania. Suppose that 18% of all inspected cars in Pennsylvania have problems that need to be corrected. Unfortunately, Pennsylvania state inspections fail to detect these problems 12% of the time. On the other hand, assume that an inspection never detects a problem when there is no problem. Consider a car that is inspected and is found to be free of problems. What is the probability that there is indeed something wrong that the inspection has failed to uncover?
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