Question

Suppose Sony sells a warranty on one of its products. They find the probability that a warranty holder files an accidental damage claim is 15%. The probability they file a claim on the battery is 35%. Each warrentt holder can only file up to one of each type of claim and file types independently of each other. Develop a table to help solve the problem.

a) What is the probability that a warranty holder makes a claim on their warranty? Assume filing an accidental damage claim is independent of filing a battery claim.

b) GIVEN that we know someone files a battery claim, how likely are they to file an accidental claim?

Answer 1