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Problem: A firm uses three local hotels to provide accommodations for its clients. From past experience, it is known that 20% of its clients are assigned rooms at Hotel A, 45% at Hotel B and 35% at Hotel C. it is also known that the probabilities of Hotel A, Hotel B and Hotel C facing water problems are 0.02, 0.01 and 0.03 respectively.
Required:
Question 1: What is the probability that a client will be assigned a room without water problem.
Question 2: Given that the room is without water problem, what is the probability that it is at Hotel B.
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