let's assume that we have 100 cars going to the inspection station.
80 have no problem
20 have ';faulty poolution control system';
of these 20
40% of 20 = 8 pay over $100
60% of 20 = 12 pay under $100
8 out of 100 = 0.08 probability %26lt;==== answer
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ps: the wording on this problem is a bit ';cloudy'; although this is just my opinionTwenty percent of cars that are inspected have a faulty pollution control systems. The cost of repairing a?
40%
It is mentioned in the question.
0.2*0.4 = 0.08
8% of the time
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