Use Bayes' Rule to Find the Indicated Probability

question 60

Multiple Choice

Use Bayes' rule to find the indicated probability.
-Quality Motors has three plants.Plant 1 produces 35% of the car output,plant 2 produces 20% and plant 3 produces the remaining 45%.One percent of the output of plant 1 is defective,1.8% of the output of plant 2 is defective and 2% of the output of plant 3 is defective.The annual total production of Quality Motors is 1,000,000 cars.A car chosen at random from the annual output and is found defection.What is the probability that it came from plant 2?

• A)0.217
• B)0.35
• C)0.559
• D)0.224

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Definitions:

Dependent

An individual, usually a child or spouse, who relies on another person for financial support and qualifies for certain tax benefits.

Exemption Amount

The portion of an individual's or entity's income that is not subject to tax, reducing taxable income.

Tax Return

The form or forms used to report income and file income taxes with tax authorities, including information on income earned, deductions, and credits claimed.

Taxable Income (TI)

This term refers to the gross income of an individual or corporation, less any allowable tax deductions or exemptions, which is subject to taxation by governmental authorities.