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STAT 2507 A EXAM CODE: 001 10. Building contracts were issued last year to three contractors starting up a new subdivision of 20 houses. Tara

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STAT 2507 A EXAM CODE: 001 10. Building contracts were issued last year to three contractors starting up a new subdivision of 20 houses. Tara Construction (T) and Westview Construction (W) built 5 houses each. The most active contractor, Hearthstone Construction (H), built ten houses. Tara's houses have a 20% probability of developing leaky basements (L); homes built by Westview and Hearthstone have the same problem 10% and 5% of the time, respectively. (A) (3 marks) What is the probability that a randomly selected home will develop a leaky basement? (B) (3 marks) The Better Business Bureau received a complaint from one of the new homeowners that his basement is leaking. What is the probability that the house was built by Hearthstone Construction

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