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Consider a mobile phone manufacturing company that categorizes its customers based on their likeli- hood of damaging their phones. According to the company's research, there
Consider a mobile phone manufacturing company that categorizes its customers based on their likeli- hood of damaging their phones. According to the company's research, there are two types of customers: (1) those who are prone to damaging their phones, and (ii) those who are not. The company's data indicates that a customer who is prone to damaging their phone has a 40% chance of doing so within a year. In contrast, for those who are not prone to phone damage, this probability is only 20%. 1. If it is known that 30% of the customer base is prone to damaging their phones, what is the probability that a new customer will damage their phone within a year of purchase? 2. Suppose that a new customer damaged his/her phone within a year of purchasing. What is the probability that he/she is prone to phone damage
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