Question

Seventy percent of the shoes sold in a particular store come from a supplier in Mexico; the remaining thirty percent are from a supplier in India. Records show that three percent of the Indian shoes are returned with defects, but only one percent of the Mexican shoes are returned with defects. a) If a customer is leaving with a pair of new shoes, what is the (prior) probability that the shoes were made in Mexico? b) If a customer is returning with defective shoes, what is the (posterior) probability that the shoes were made in Mexico?

Answer 1