A Manufacturing Firm Orders Computer Chips from Three Different Companies

question 70

Essay

A manufacturing firm orders computer chips from three different companies: 10% from Company A; 20% from Company B; and 70% from Company C. Some of the computer chips that are ordered are defective: 4% of chips from Company A are defective; 2% of chips from Company B are defective; and 0.5% of chips from Company C are defective. A worker at the manufacturing firm discovers that a randomly selected computer chip is defective. What is the probability that the computer chip came from Company B? Show your work.

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Definitions:

Specialized Tasks

Distinct components of a job designed to be performed by individuals with specific skills or training, often to increase efficiency.

Coincidence of Wants

In barter economies, this refers to the situation where two parties each possess an item the other wants, making an exchange possible without the need for money.

Medium of Exchange

An intermediary used in trade to avoid the inconveniences of a pure barter system.

Specialization in Production

The process by which individuals, businesses, or countries focus on producing a limited scope of goods or services to gain greater efficiency and quality.