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:

Straight Piecework

A compensation system where workers are paid a fixed rate for each unit produced or action performed, regardless of time.

Certain Rate

A specified value or quantity used as a standard measure or indicator, often in financial or statistical contexts.

Merit Raises

An increase in salary based on an employee's performance, often determined through evaluations, recognising their contributions and achievements.

Performance Declines

A decrease in the efficiency, productivity, or output quality of an individual or organization over time.