ABSTRACT
While Mrs Smith is driving at night a taxi comes towards her and she has to swerve to avoid it. Her legs are broken as a result of hitting a parked car. The town has only two taxi companies, the Red Company with red cabs and the Green Company with green cabs. 60% of the taxis are red. Mrs. Smith saw that she was hit by a taxi but not which colour it was. She sues the Red company. We assume the two companies have equally competent drivers, and that on the evening in question the journeys of both red and green taxis are distributed evenly through the city and the 60/40 proportion applies.
