Question

Twenty percent of cars that are inspected have faulty pollution control systems. The cost of repairing a pollution control system exceeds $100 about 40% of the time. When a driver takes her car in for inspection, what’s the probability that she will end up paying more than $100 to repair the pollution control system?

Answer 1

8%

Explanation:

Assumption: her car has faulty pollution control system is independent of the cost of repairing a pollution control system exceeds $100.

Applying the multiplication rule gives:

faulty pollution control system and cost of repairing it exceeds $100 = 0.2*0.4 = 0.08 = 8%