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

question 30

Short Answer

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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Definitions:

Cost Variance

The difference between the budgeted or estimated cost of a project and the actual cost incurred.

Cost Performance Index

A measure in project management that calculates the efficiency of budget utilization by dividing the earned value by the actual costs.

Schedule Variance

The difference between the planned and the actual project progress, indicating whether a project is ahead or behind schedule.

Resource Flow Variance

Variations in the rate, timing, and quality of resources being supplied to or produced by a process.