Answer:
The probability of substandard aggregates is 0.044.
Explanation:
We are given that orders are for Company A to deliver 700 truckloads a day and 300 truckloads a day from Company B.
From prior experience, it is expected that 5% of the material from Company A will be substandard and 3% of the material from Company B will be substandard.
Let the probability that orders are for Company A to deliver = P(A) =
The probability that orders are for Company B to deliver = P(B) =
Let event S = material which is substandard
So, the probability that the material from Company A will be substandard = P(S/A) = 0.05
the probability that the material from Company B will be substandard = P(S/B) = 0.03
Now, the probability of substandard aggregates is given by = P(S)
P(S) = P(A)
P(S/A) + P(B)
P(S/B)
= 0.7
0.05 + 0.3
0.03
= 0.044
Hence, the probability of substandard aggregates is 0.044.