Most car manufacturers will have a goodwill or special policy in place to extend the original warranty of the vehicle for no cost or cost-reduced repairs. These policies are usually not made public, and are often applied to vehicle defects that surface after manufacturing. One model of vehicle was found to have defective airbags, due to a failure of the sensing system. It was estimated that the odds in favor of purchasing the vehicle with this defect were 51: 635
What are the odds of purchasing this vehicle without the defect?
To calculate the odds of purchasing the vehicle without the defect, we first need to find the probability of purchasing the vehicle with the defect, which is 51 out of 686 (51 + 635).
Probability of purchasing the vehicle with the defect = 51/686 = 0.0744
Now, to find the probability of purchasing the vehicle without the defect, we subtract the probability of purchasing with the defect from 1:
Probability of purchasing the vehicle without the defect = 1 - 0.0744 = 0.9256
Now, we can convert this probability into odds:
Odds of purchasing the vehicle without the defect = Probability of purchasing without the defect / Probability of purchasing with the defect
Odds of purchasing the vehicle without the defect = 0.9256 / 0.0744 ≈ 12.44
Therefore, the odds of purchasing the vehicle without the defect are approximately 12.44:1.