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Question

If a machine is correctly set up, it produces 90% acceptable items. If it is incorrectly set up, it produces only 40% acceptable items. Past experience shows that 80% of the set ups are correctly done. If after a certain set up, the machine produces 2 acceptable items, find the probability that the machine is correctly setup.

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Solution

Let E1 = Event that the reactions is correctly setup.
E2 = Event that the machine is incorrectly setup.
E = Event that machine produce two acceptable items.
Now,
P(E1/E) = Probability of machine have a correct setup if it produce two acceptable item.
=P(E1)P(E/E1)P(E1)P(E/E1)+P(E2)P(E/E2)
P(E1)=80%=0.8
P(E2)=(10080)=20%=0.2
P(E/E1)=90%×90%=9×9=0.81
P(E/E2)=40%×40%=0.4×0.4=0.16
P(E1/E)=0.8×0.810.8×0.81+0.2×0.16=0.95

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