Question

An information technology company produces 42% of its computer chips at a plant in St. Louis...

An information technology company produces 42% of its computer chips at a plant in St. Louis and the remainder of its chips at a plant in Chicago. It is known that 0.5% of the chips produced in St. Louis are defective, while 0.9% of the chips produced at the plan in Chicago are defective. What is the probability that a randomly chosen computer chip produced by this company is defective and was produced in St. Louis?

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Solution:

We are given that:

42% of computer chips at a plant are produced in St. Louis and 58% of computer chips at a plant are produced in Chicago.

0.5% of the chips produced in St. Louis are defective and 0.9% of the chips produced in Chicago are defective.

Therefore, the probability that a randomly chosen computer chip produced by this company is defective and was produced in St. Louis is:

42% x 0.5% = 42 0.5 x 100100 = 0.42 x 0.005 = 0.0021

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