Question

A company that manufactures video cameras produces a basic model and a deluxe model. Over the past year, 40% of the cameras sold have been of the basic model. Of those buying the basic model, 30% purchase an extended warranty, whereas 50% of all deluxe purchasers do so. If a randomly selected purchaser has an extended warranty, what is the probability that he/she has a basic model?

Answer 1

W = extended warranty
B = basic model
D = deluxe model
P(W) = P(B and W) + P(D and W) = 0.4*0.3+0.6*0.5 =0.42
P(B|W) = P(B and W) / P(W) = 0.12/0.42