Answers
Probability of a blue cab = 750/1000 = 0.75
Probability of a green cab = 250/1000 = 0.25
Probability that the witness correctly identifies the car = 0.70.
Probability that the cab was a blue cab given the statement of the witness =
= Probability of being a blue cab * Probability that the witness identifies the cab correctly
= 0.75 * 0.70
= 0.525.
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