Suppose that 60 percent of a company's computer chips are manufactured in Factory A, while 40 percent are produced in Factory B [P(A) = .60 for a randomly selected chip]. The defect rates for the two factories are 35 percent for Factory A and 25 percent for Factory B. Suppose we now know that the randomly selected chip is defective. Find the probability that the defective chip comes from Factory A.

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The Answer of Suppose that 60 percent of a company's computer chips are manufactured in Factory A, while 40 percent are produced in Factory B [P(A) = .60 for a randomly selected chip]. The defect rates for the two factories are 35 percent for Factory A and 25 percent for Factory B. Suppose we now know that the randomly selected chip is defective. Find the probability that the defective chip comes from Factory A.

Suppose That 60 Percent of a Company's Computer Chips Are