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 new 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 needs a warranty repair or was manufactured by a U.S.-based
company?
A. 0.32
B. 0.68
C. 0.27
D. 0.73
E. None of the other choices is correct.
