I think I have this one - but want to make sure The ABC manufacturing company pu

Question

I think I have this one - but want to make sure

The ABC manufacturing company purchases a certain part from two suppliers (A supplier & B supplier). The parts received from the suppliers are used to produce the company’s major product. The parts received from the suppliers are either defective or good parts. The A supplier provides 80% of all parts. Given that a part is from the A supplier, there is 2.5% probability that the part is defective. Given that a part is from the B supplier, there is a 1% chance that the part is defective.

a) If a defective part is found, what is the probability that it is from supplier B?
b) What is the probability that the company’s major product is defective?

Explanation / Answer

Part A First you know that 20% of the products come from supplier B. You take (probability of part from supplier B) *(Probability of a defect with supplier B) = (.20)*(.01) = .02 Part B You take the probability of (Supplier A)*(Supplier A defect rate) + (Supplier B)*(Supplier B defect rate) = (.8)*(.025)+ (.2)*(.01) =.022

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