[Solution] Information gathered by a marketing research organization reveals that the cell phones sold by Excellent Communications Corporation under the "Cello"
Question: Information gathered by a marketing research organization reveals that the cell phones sold by Excellent Communications Corporation under the "Cello" trademark come from four different manufacturers. Manufacturer A supplies 30% of the cell phones while manufacturers B, C and D supply 25%, 25% and 20% respectively. The same information also reveals that 10% of the cell phones supplied by A are substandard, while the corresponding figures for B, C and D are 6%, 10% and 8% respectively.
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Let X denote the event 'cell phone is substandard'. Also let X' denote the complement of X. Draw a neat tree diagram with all the relevant information clearly written on the branches of the tree. Then compute and explain the meaning of the following probabilities:
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\(\Pr \left( C\cap X \right)\)
and
(ii) \(\Pr \left( D\cap X' \right)\)
(ii) Now we have that
\[\Pr \left( D\cap X' \right)=\Pr \left( X'|D \right)\Pr \left( D \right)=\left( 1-0.08 \right)\times 0.20=0.184\]
This probability represents the probability of choosing a cell phone that was manufactured by D and that is not substandard.
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\(\Pr \left( C\cap X \right)\)
and
(ii) \(\Pr \left( D\cap X' \right)\)
- Mr. Fox buys a Cello cell phone. What is the probability that it is not substandard?
- Ms. Radix, a professional engineer, buys a Cello cell phone and finds that it is substandard. What is the probability that this cell phone came out of the production line of manufacturer B?
- Assume now that the head office of Universal Consulting Engineers buys a set of 15 Cello cell phones. What is the probability that at least two will not be substandard?
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