Business MathematicsNEB 2081

a) Write multiplicative law of probability for independent events A and B. [1] b) Write conditional probability of event P given that event Q has already occured. [1] c) In a factory producing…

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  • a) Write multiplicative law of probability for independent events A and B. [1]
  • b) Write conditional probability of event P given that event Q has already occured. [1]
  • c) In a factory producing radios, there are three machines producing 500, 1000, 1500 radios per hour respectively. These machines produce 3%, 5%, 8% defective radios. One radio selected random from a hour production of the three machines and found to be defective. What is the probability that the radio is produced from the third machine ? [3]

Answer

a) Multiplicative Law of Probability for Independent Events

For two independent events and , the multiplicative law of probability states that the probability of both events occurring simultaneously is the product of their individual probabilities:

Explanation:

  • If and are independent, the occurrence of one does not affect the probability of the other.
  • Example: If and , then .

b) Conditional Probability of Event Given

The conditional probability of event occurring given that event has already occurred is defined as:

Explanation:

  • : Probability of both and occurring.
  • : Probability of occurring.
  • Example: If and , then .

c) Probability of Defective Radio from the Third Machine

Given:

  • Machine 1: Produces 500 radios/hour, 3% defective.
  • Machine 2: Produces 1000 radios/hour, 5% defective.
  • Machine 3: Produces 1500 radios/hour, 8% defective.
  • A randomly selected defective radio is found.

Find: Probability that the defective radio was produced by the third machine.

Step 1: Calculate Total Production and Defective Radios

  • Total radios produced per hour: radios.

  • Defective radios from each machine:

    • Machine 1: defective.
    • Machine 2: defective.
    • Machine 3: defective.
  • Total defective radios: .

Step 2: Apply Bayes' Theorem

We want .

Using the formula:

Substitute the values:

Final Answer:

The probability that the defective radio was produced by the third machine is 0.648 (or 64.8%).


Note: The answer is derived using conditional probability and Bayes' Theorem, ensuring all steps are logically connected.

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