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# Contingency Tables: Warranty Repair

Each year, ratings are compiled concerning the performance of new cars during the first 90 days of use. Suppose that the cars have been categorized according to whether the car needs warranty-related repair (yes or no) and the country in which the company manufacturing the car is based (United States or not United States). Based on the data collected, the probability that the new car needs warranty repair is 0.04, the probability that the car was manufactured by a U.S.-based company is 0.60, and the probability that the new car needs a warranty repair and was manufactured by a U.S.-based company is 0.025. Construct a contingency table or a Venn diagram to evaluate the probabilities of a warranty-related repair. What is the probability that a new car selected at random

a. needs a warranty repair?

b. needs a warranty repair and was manufactured by a U.S.- based company?

c. needs a warranty repair or was manufactured by a U.S.- based company?

d. needs a warranty repair or was not manufactured by a U.S.-based company?

#### Solution Summary

The contingency tables for warranty repairs are examined.

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