Problem 6 The following table reports the proportions of microchips that a certain PC manufacturer purchases from seven suppliers. a. It is known that the proportions of defective microchips produced by the seven suppliers are 0.001, 0.0003, 0.0007, 0.006, 0.0002, 0.0002, and 0.001, respectively. If a single microchip failure is observed, what are the probabilities that each supplier is responsible? b. Instead assume that all suppliers produce defective microchips at the same rate of 0.0005. If a single microchip failure is observed, what are the probabilities that each supplier is responsible? Supplier S1 S2 S3 S4 S5 S6 S7 Proportion 0.15 0.05 0.10 0.20 0.12 0.20 0.18

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Problem 6
The following table reports the proportions of microchips that a certain PC manufacturer
purchases from seven suppliers.
a. It is known that the proportions of defective microchips produced by the seven
suppliers are 0.001, 0.0003, 0.0007, 0.006, 0.0002, 0.0002, and 0.001, respectively. If a
single microchip failure is observed, what are the probabilities that each supplier is
responsible?
b. Instead assume that all suppliers produce defective microchips at the same rate of
0.0005. If a single microchip failure is observed, what are the probabilities that each
supplier is responsible?
Supplier
S1
S2
S3
S4
$5
S6
S7
Proportion
0.15
0.05
0.10
0.20
0.12
0.20
0.18
Transcribed Image Text:Problem 6 The following table reports the proportions of microchips that a certain PC manufacturer purchases from seven suppliers. a. It is known that the proportions of defective microchips produced by the seven suppliers are 0.001, 0.0003, 0.0007, 0.006, 0.0002, 0.0002, and 0.001, respectively. If a single microchip failure is observed, what are the probabilities that each supplier is responsible? b. Instead assume that all suppliers produce defective microchips at the same rate of 0.0005. If a single microchip failure is observed, what are the probabilities that each supplier is responsible? Supplier S1 S2 S3 S4 $5 S6 S7 Proportion 0.15 0.05 0.10 0.20 0.12 0.20 0.18
Expert Solution
Step 1: State the problem

It is required to find the probabilities that each supplier is responsible for the microchip failure, under the two different conditions- first, when the proportions of defectives by the different suppliers are different, then, when the proportion of defectives for each supplier is the same, 0.0005.

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