I need help in solving the following question:
A company is working on new type of airbags for cars. The old air bags, in case of accident, are known to fail at a rate of 23%. New air bags were tested on 230 cars and 10% of them failed. What is the probability that 10% of the 230 cars would have had failures with old bags?
I am not able to figure out what information is provided and what am I supposed to calculate like for the first piece of information, P(failure|old air bags) is given or P(failure, old air bags). How do you figure from sentences if conditional probability is given or probability of intersection of two things?
You have been asked to find the probability that a count of 23 cars (among the 230) would have had failures when using old bags.
Hint: use binomial distribution as your model.
When X ~ Bin(230, 0.23), find P(X=23)