SOLUTION: A company buys 20% of its electronic chips from supplier New and the rests from other suppliers. Assume that the company purchases a large number of chips from each supplier. It i

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Question 1181553: A company buys 20% of its electronic chips from supplier New and the rests from other suppliers. Assume that the company purchases a large number of chips from each supplier.
It is known that 1/10 (one tenth) of supplier New’s chips are defective while the other suppliers have only 1/50 (one fiftieth) chips defective. The company selects 20 chips at random from a batch and tests them. One chip is found to be defective.
What is the probability that this batch of chips came from supplier New?

Answer by CPhill(1959) About Me  (Show Source):
You can put this solution on YOUR website!
Here's how to solve this problem using Bayes' Theorem:
**1. Define Events:**
* N: The batch of chips came from supplier New.
* O: The batch of chips came from other suppliers.
* D: A randomly selected chip is defective.
**2. Given Probabilities:**
* P(N) = 0.20 (20% of chips are from New)
* P(O) = 1 - P(N) = 0.80 (80% of chips are from other suppliers)
* P(D|N) = 1/10 = 0.10 (Probability of a defective chip given it's from New)
* P(D|O) = 1/50 = 0.02 (Probability of a defective chip given it's from other suppliers)
**3. What We Want:**
We want to find P(N|D), the probability that the batch came from supplier New *given* that one chip is found to be defective.
**4. Bayes' Theorem:**
Bayes' Theorem states:
P(N|D) = [P(D|N) * P(N)] / P(D)
We need to find P(D), the overall probability of a defective chip. We can use the law of total probability:
P(D) = P(D|N) * P(N) + P(D|O) * P(O)
P(D) = (0.10 * 0.20) + (0.02 * 0.80)
P(D) = 0.02 + 0.016
P(D) = 0.036
**5. Apply Bayes' Theorem:**
P(N|D) = (0.10 * 0.20) / 0.036
P(N|D) = 0.02 / 0.036
P(N|D) ≈ 0.556
**Answer:**
The probability that the batch of chips came from supplier New, given that one chip is defective, is approximately 0.556 or 55.6%.