Suppose that you\'re thinking about buying a used R-car at Honest Abe\'s. In ord

Question

Suppose that you're thinking about buying a used R-car at Honest Abe's. In order to make an informed decision you look up the records in an auto magazine and find that 30% of these cars have a faulty transmission. To get more information you hire a mechanic who is excellent: Of all the faulty cars he has examined in the past he correctly judged that 90% were "faulty" and only erroneously judged 10% as "OK." He 's almost as good at judging good cars: Of all the good cars he's correctly judged that 80% were "good" and only erroneously judged 20% as "faulty."

What is the probability that the R-car you're thinking of buying has a faulty transmission BEFORE you hire the mechanic?

.27 .24 .30 .20 .41

Explanation / Answer

Correct option:

.30

EXPLANATION:

The question asked is: BEFORE you hire the mechanic.

In the write up, in the beginning, it is told, "30% of these cars have a faulty transmission". So, the correct option is : 0.30

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