Question

In: Statistics and Probability

Cars are being produced by two factories, but factory I produces twice as many cars as...

Cars are being produced by two factories, but factory I produces twice as many cars as factory II in a given time. Factory I is known to produce 2% defectives and factory II produces 1% defectives. A car is examined and found to be not defective. What is the probability that it came from factory 1?

Solutions

Expert Solution

P[ car produced in factory I ] = 2/3

P[ car produced in factory II ] = 1/3

P[ defective | factory I ] = 2% = 0.02

P[ non defective | factor I ] = 1 - P[ defective | factory I ]

P[ non defective | factor I ] = 1 - 0.02

P[ non defective | factor I ] = 0.98

P[ defective | factory II ] = 1% = 0.01

P[ non defective | factor II ] = 1 - P[ defective | factory II ]

P[ non defective | factor II ] = 1 - 0.01

P[ non defective | factor II ] = 0.99

P[ non defective ] = P[ non defective | factor II ]*P[ car produced in factory II ] + P[ non defective | factor I ]*P[ car produced in factory ]

P[ non defective ] = 0.99*(1/3) + 0.98*(2/3)

P[ non defective ] = ( 0.99 + 1.96 )/3

P[ non defective ] = 0.983

We need to find

P[ factor I | non defective ] = P[ non defective | factor I ]*P[ car produced in factory ] / P[ non defective ]

P[ factor I | non defective ] = 0.98*(2/3) / 0.983

P[ factor I | non defective ] = 0.653/0.983

P[ factor I | non defective ] = 0.6644


Related Solutions

Suppose a manufacturing firm has two factories (Factory 1 and Factory 2), and a single production...
Suppose a manufacturing firm has two factories (Factory 1 and Factory 2), and a single production process (Process A) that is used in both factories. A new process (Process B) is developed that potentially reduces production costs. To test whether Process B is less costly than Process A, an experiment is designed where: Within each Factory, products are assigned randomly to Process A or Process B. Production costs for each product are recorded. Note that resources (i.e. materials, workers, equipment)...
Suppose there are two factories that emit a certain pollutant into the air. When a factory...
Suppose there are two factories that emit a certain pollutant into the air. When a factory reduces emission, there is a “marginal abatement cost” (MAC) for each unit of pollution abatement (reduced emission). The marginal abatement costs for the two factories are given by MAC1 and MAC2 respectively. Let MAC1 = 100 − 10E1 and MAC2 = 50 − 10E2, where E is the level of emission. Now assume each unit of emission causes a damage to the society given...
Two semiconductor factories are being compared to see if there is a difference in the average...
Two semiconductor factories are being compared to see if there is a difference in the average defect rates of the chips they produce. In the first factory, 250 chips are sampled. In the second factory, 350 chips are sampled. The proportions of defective chips are 4.0% and 6.0%, respectively. Using a confidence level of 95%, which of the following statements is supported by the data? Group of answer choices There is not sufficient evidence to show a significant difference in...
Factory Overhead Rates and Account Balance Prostheses Industries operates two factories. The manufacturing operations of Factory...
Factory Overhead Rates and Account Balance Prostheses Industries operates two factories. The manufacturing operations of Factory 1 are machine intensive, while the manufacturing operations of Factory 2 are labor intensive. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal...
Sundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis...
Sundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning March 1 $530,640 $774,700 Estimated direct labor hours for year 12,700 Estimated machine hours for year 24,120 Actual factory overhead costs for...
Sundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis...
Sundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning March 1 $1,337,500 $847,000 Estimated direct labor hours for year 24,200 Estimated machine hours for year 53,500 Actual factory overhead costs for...
Wholesale of electronic chips receives products from two factories, factory A provides 60% Of the goods...
Wholesale of electronic chips receives products from two factories, factory A provides 60% Of the goods and Factory B supplies 40% of the goods. From past experience it is known that 20% of the chips of plant A are defective. It is also known that 50% of all defective chips are supplied by plant B. A. What percentage of Factory B's chips are defective? B. What is the probability that a chip that is found to be in good condition...
If I have two dice A and B, and I roll it twice, we have the...
If I have two dice A and B, and I roll it twice, we have the outcomes A1, A2, B1, B2. Let X = A1+ A2, Y= B1+B2. What is the probability of X+Y <= 22.
Ike’s Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories.
Costs in the short run versus in the long runIke’s Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company’s short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.)Number of FactoriesAverage Total Cost(Dollars...
If a monopolist produces its product in two factories, it must determine how to allocate production...
If a monopolist produces its product in two factories, it must determine how to allocate production among those locations to minimize its total costs of production and thereby maximize its profits. It will do this by producing more at the factory with the lower marginal cost of production until the marginal cost of the last unit produced in each factory is equal: MC1 = MC2. If the marginal cost of producing at Factory 1 is MC1 = 2Q1, the marginal...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT