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

Short Answer

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