Use Bayes' Theorem to Find the Indicated Probability

question 121

Multiple Choice

Use Bayes' theorem to find the indicated probability.
-A company manufacturing electronic components for home entertainment systems buys electrical connectors from three suppliers. It buys 20% of the connectors from supplier A, 33% from supplier B, and 47% from
Supplier C.
It finds that 3% of the connectors from supplier A are defective, 2% of the connectors from supplier B are
Defective, and 5% of the connectors from supplier C are defective.
If a customer buys one of these components and finds that the connector is defective, what is the probability
That it came from supplier B?

• A) 0.183
• B) 0.02
• C) 0.166
• D) 0.224

---

Definitions:

Investment-Demand

Investment-Demand entails the desire for assets or goods that will provide returns over time, heavily influenced by interest rates, future profit expectations, and economic conditions.

Interest Rate

The part of the loan amount that is levied as interest by the lender on the borrower, often presented as an annual percentage rate of the loan's total value.

Rate of Return

The net gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Interest Rate

The fraction of a monetary amount imposed for its borrowing, often stated in terms of an annual percentage rate.