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A cab was involved in a hit-and-run accident during the night near a famous mid-

ID: 3238351 • Letter: A

Question

A cab was involved in a hit-and-run accident during the night near a famous mid-western university. Two cab companies, the Blue and the Gold, operate in the city near the campus. There are two facts: (1) 85 % of the cabs in the city are Gold and 15 % are Blue, and (2) a witness identified the cab as Blue. The court tested the reliability of the witness under the same circumstances that existed the night of the accident and concluded that the witness correctly identified each of the two colors 80 % of the time and failed to do so 20 % of the time. Determine the percent probability that the cab involved in the accident was Blue.

Explanation / Answer

Probability that the cab involved in the accident is blue

= 0.15* 0.80 = 0.12

Where 0.15 is the probability of any cab in the road being blue

And 0.80 is the probability of the witness being correct