Question
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
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 ( in some country X or not in country X). Based on the data collected, the probability that the new car needs a warranty repair is .08, the probability that the car is manufactured by a company based in country X is .60, and the probability that the new car needs a warranty repair and was manufactured by a company based in country X is .025.
Use this information to answer (a) Through (D)
Below is the contingency table which I prepared after using the information mentioned in the question and other cells I derived on the basis of probability rules:
| Warranty related repair |
| ||
Yes | No |
| ||
Manufacturing a car is based | Country X | 0.025 | 0.575 | 0.60 |
Not in Country X | 0.055 | 0.345 | 0.40 | |
|
| 0.08 | 0.92 | 1.00 |
a.)Suppose you know that a company based in country X manufactured a particular car. What is the probability that the car needs warranty repair?
b.)Suppose you know that a company based in country X did not manufacture a particular car. What is the probability that the car needs warranty repair?
c.)Are need for warranty repair and location of the company manufacturing the car independent?
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