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ABC Company purchases electronic chips from three individual suppliers: Hall Ele

ID: 3233769 • Letter: A

Question

ABC Company purchases electronic chips from three individual suppliers: Hall Electronics, Schuler Sales and Crawford Components. The probability ABC Company will use Hall electronics is 30%, uses Schuler Sales is 20%, and Crawford Components is 50%. While all three suppliers are very reliable, the probability Hall Electronics products defective chips is 3%, the probability Schuler Sales and Crawford components produce defective chips is 5% and 4% respectively. ABC Company purchases electronic chips. What is the probability the electronic chips are defective?

Explanation / Answer

Ans: Probability that electronic chips purchased by ABC company are defective=P(defective chips are from Hall electronics)+P( defective chips are from Schuler Sales)+P(defective chips are from crawford components)

=0.3*0.03+0.2*0.05+0.5*0.04

=0.009+0.01+0.02

=0.039