Question: 16
(Choose 1 answer)
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 a warranty-related repair (yes
or no) and the country in which the company manufacturing a car is based (United States or not United
States). Based on the data collected, the probability that the new car needs a warranty repair is 0.05, the
probability that the car was manufactured by a U.S.-based company is 0.70, and the probability that the new
car needs a warranty repair and was manufactured by a U.S.-based company is 0.02. What is the probability
that a new car selected at random was manufactured by a U.S.-based company or does not need warranty
repair?
A. 0.23
B. None of the other choices is correct.
C. 0.27
D. 0.73
E. 0.97
