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

question 54

Essay

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 A..677 B.Suppose we now know that the randomly selected chip is defective.Find the probability that the defective chip comes from Factory A.

---

Definitions:

S Corporation

A specific kind of corporation in the U.S. that conforms to certain Internal Revenue Code criteria, which permits it to distribute income directly to its shareholders, thereby bypassing the double taxation issue.

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction, often seen in international business where income is taxed in both the source and the resident country.

Secured Bond

A bond backed by collateral to decrease the risk of default.

Due Process

A fundamental legal principle that ensures fair treatments and procedures are followed by the government before depriving a person of life, liberty, or property.