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Assume that company A makes 80% of all electrocardiograph machines in the market

ID: 3355508 • Letter: A

Question

Assume that company A makes 80% of all electrocardiograph machines in the market, company B makes 15% of them, and company C makes the other 5%. The electrocardiographs machines made by company A have a 4% rate of defects, the company B machines have a 5% rate of defects, while the company C machines have a 8% rate of defects. (a) If a randomly selected electrocardiograph machine is tested and is found to be defective. Find the probability that it was made by company A (b) Suppose we randomly select one electrocardiograph machine from the market. Find the probability that it was made by company A and it is not defective.

Explanation / Answer

a)

probability of machine to be defective =P(from company A and defective+from company B and defective+from company C and defective)=0.80*0.04+0.15*0.05+0.05*0.08=0.0435

hence probability of machine manufactured made by company given defective

=P(from company A and defective)/P(dfective) =0.80*0.04/0.0435=0.7356

b) probability made by company and not defective =P(company A)*P(not defective|company A)

=0.8*(1-0.04)=0.768