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What percentage of chips sold will be bad

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Question: A manufacturing process produces integrated circuit chips, over the long run the fraction of bad chips produced by the process is around 20%. Thoroughly testing a chip to determine whether it is good or bad is rather expensive, so a cheap test is tried. All good chips will pass the cheap test, but so will 10% of the bad chips

a) Given a chip passes the cheap test, what is the probability that it is good chip?

b) If a company using this manufacturing process sells all chips which pass the cheap test, over the long run what percentage of chips sold will be bad?

Reference no: EM131809655

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