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CFA Level 1
Quantitative Methods

Probability of Selecting a Defective Product

Very Easy Probability Concepts Basic Probability Principles

A company has two machines, Machine A and Machine B, that produce the same product. Machine A produces the product 70% of the time without defects, while Machine B produces it 80% of the time without defects. If a product comes from either machine, calculate the probability that the product has defects.

Assuming that both machines operate with equal frequency, what is the probability of selecting a defective product?

Hint

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