A law firm is trying to decide whether to represent car owners in a class action lawsuit against the manufactur of a certain make and model for a particular defect. If 5 percent or less of the cars of this make and model hav the defect, the firm will not recover its expenses. Therefore, the firm will handle the lawsuit only if it is convinced that more than 5 percent of cars of this make and model have the defect. The firm plans to take a random sample of 1000 people who bought this car and ask them if they experienced this defect in their cars. State the null and alternative hypotheses that the law firm should test.
Compound Probability
Compound probability can be defined as the probability of the two events which are independent. It can be defined as the multiplication of the probability of two events that are not dependent.
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Probability theory is a branch of mathematics that deals with the subject of probability. Although there are many different concepts of probability, probability theory expresses the definition mathematically through a series of axioms. Usually, these axioms express probability in terms of a probability space, which assigns a measure with values ranging from 0 to 1 to a set of outcomes known as the sample space. An event is a subset of these outcomes that is described.
Conditional Probability
By definition, the term probability is expressed as a part of mathematics where the chance of an event that may either occur or not is evaluated and expressed in numerical terms. The range of the value within which probability can be expressed is between 0 and 1. The higher the chance of an event occurring, the closer is its value to be 1. If the probability of an event is 1, it means that the event will happen under all considered circumstances. Similarly, if the probability is exactly 0, then no matter the situation, the event will never occur.
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