A car dealer has 100 cars to sell on his lot. You are interested in buying a car
ID: 1929692 • Letter: A
Question
A car dealer has 100 cars to sell on his lot. You are interested in buying a car from him, but you have been told that K of the cars on the lot are "lemons" (i.e. these cars have mechanical faults that are not apparent until you drive them). You are given information that K can be any of the 5 values {0,1,2,3,4}, and that all of these values are equally likely. What is the probability that there are less than 3 lemons on the lot? You decide to test drive 20 cars, selected at random from the lot. All 20 cars drive perfectly - i.e. none are lemons. Having determined that there are no lemons among the 20 randomly selected test cars, now what is the probability that there are less than 3 lemons on the lot? (Hint: for this part, consider the sample space to consist of all outcomes consistent with the fact that the 20 test cars are not lemons, for all possible values of K.)Explanation / Answer
probability of each of {0,1,2,3,4] is equal.
Hence Probability of any one of them = 1/5 = 0.2
a> thus probability of less than 3 lemons = P(0) + P(1) + P(2) = 3*0.2 = 0.6
probability of less than 3 lemons is 60% = 0.6
b> Since there are no lemons in the 20 test - driven cars, probability still remains same for each of {0,1,2,3,4} = 1/5 = 0.2
Hence probablility of less than 3 lemons = 60% = 0.6
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