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Analysis of historical data show the probability a machine tool your company prd

ID: 3226699 • Letter: A

Question

Analysis of historical data show the probability a machine tool your company prduces will fail when installed in a computer's factory is .02. Your quality assurance department utilizes sophisticated testing and diagnostic equipment to determine whether a machine tool you produce will function once it is installed in a customer's factory.

If the machine tool would function when installed, the probability that quality assurance department testing would indicate the machine tool will fail when installed is .05. If the machine tool will fail when installed, the probability that quality assurance testing will indicate the machine tool will fail is .99.

What is the probability that machine tool will function when installed given the quality assurance testing indicates the machine tool will function?

Explanation / Answer

probabilty that quality assurance testing indicates the machine tool will function =0.98*0.95+0.02*0.01=0.9312

hence probability that machine tool will function when installed given the quality assurance testing indicates the machine tool will function ==0.98*0.95/0.9312 =0.9998

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