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1 November, 12:59

10. An unprincipled used-car dealer sells cars to unsuspecting buyers, even though the dealer knows that the car will have a major breakdown within the next 6 months. The dealer provides a warranty of 45 days on all cars sold. From a long experience, the dealer knows that the probability of major breakdown in the warranty period on all cars sold is 0.15. If the dealer sold two used cars, find the probability that at least one will have a major break down in the warranty period. Round your answer to 4 decimal places

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  1. 1 November, 15:55
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    0.2775

    Step-by-step explanation:

    The probability that the car will breakdown while still under warranty

    = 0.15

    The probability that the car will not breakdown while still under warranty

    =1-0.15 = 0.85

    the probability that at least one will have a major break down in the warranty period = 1 - probability that none have a major break down within the warranty period = 1 - 0.85*0.85 = 1 - 0.7225 = 0.2775
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