An automobile plant contracted to buy shock absorbers from t

An automobile plant contracted to buy shock absorbers from two local suppliers, Bolt & Co. and Acme, Inc. Bolt supplies 40% and Acme 60%. All shocks are subject to quality control. The ones that pass are called reliable.

Of Acme’s shocks, 90% test reliable. But Bolt has been having some problems on the line, and recently only 70% of Bolt’s shock absorbers have tested reliable. What is the chance that a randomly chosen shock absorber, which is tested and found to be reliable, is made by Bolt? Show your work.

Solution

What is the chance that a randomly chosen shock absorber, which is tested and found to be reliable, is made by Bolt?

0.60 * 0.90 + 0.40 * 0.70

0.82