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1. The Ponderosa Paint and Glass Company (PP&G Co.) makes paint at three locatio

ID: 2932083 • Letter: 1

Question

1. The Ponderosa Paint and Glass Company (PP&G Co.) makes paint at three locations. Each location ships unmarked paint cans to a central warehouse for national distribution. Plant A supplies 50% of the paint, Plant B supplies 30% of the paint and Plant C supplies the remaining 20% of the paint. Past records indicate that Plant A incorrectly mixes paint 10% of the time, Plant B incorrectly mixes paint 5% of the time while Plant C incorrectly mixes paint 15% of the time.    PP&G Co. guarantees its product and spent $20,000 replacing incorrectly mixed paint last year.   If a paint can is incorrectly mixed, find the probability that it came from

a. Plant A.

b. Plant B.

c. Plant C.

Explanation / Answer

P(plant A) = 0.5

P(plant B) = 0.3

P(plant C) = 0.2

P(incorrectly mixed | plant A) = 0.1

P(incorrectly mixed | plant B) = 0.05

P(incorrectly mixed | plant C) = 0.15

P(incorrectly mixed) = P(incorrectly mixed | plant A) * P(plant A) + P(incorrectly mixed | plant B) * P(plant B) + P(incorrectly mixed | plant C) * P(plant C)

                             = 0.1 * 0.5 + 0.05 * 0.3 + 0.15 * 0.2

                             = 0.095

a) P(plant A | incorrectly mixed) = P(incorrectly mixed | plant A) * P(plant A) / P(incorrectly mixed)

                                                     = 0.1 * 0.5 / 0.095

                                                     = 0.5263

b) P(plant B | incorrectly mixed) = P(incorrectly mixed | plant B) * P(plant B) / P(incorrectly mixed)

                                                     = 0.05 * 0.3 / 0.095

                                                     = 0.1579

c) P(plant C | incorrectly mixed) = P(incorrectly mixed | plant C) * P(plant C) / P(incorrectly mixed)

                                                     = 0.15 * 0.2 / 0.095

                                                     = 0.3158