A manufacturer of bicycles produces 80 per cent of its output in its New York factory and the rest in San Francisco. If the probability of a defect in its New York output is 5% and the defect rate is 2% in San Francisco. (i) What is the probability a defective product was manufactured in San Francisco? (ii) If the firm replaces all defective bicycles, how many replacements will be required out of the weekly sales of 2000 bicycles?

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
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Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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A manufacturer of bicycles produces 80 per cent of its output in its New York factory and the rest in San
Francisco. If the probability of a defect in its New York output is 5% and the defect rate is 2% in San
Francisco.
(i)
What is the probability a defective product was manufactured in San Francisco?
(ii)
If the firm replaces all defective bicycles, how many replacements will be required out of the
weekly sales of 2000 bicycles?
Transcribed Image Text:A manufacturer of bicycles produces 80 per cent of its output in its New York factory and the rest in San Francisco. If the probability of a defect in its New York output is 5% and the defect rate is 2% in San Francisco. (i) What is the probability a defective product was manufactured in San Francisco? (ii) If the firm replaces all defective bicycles, how many replacements will be required out of the weekly sales of 2000 bicycles?
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