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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Expected values
Mock question
31. A battery manufacturer, who produces 500,000 units per month, inspects 10% of all units produced. Of those inspected it was found that 1% are faulty. Of the batteries which are not inspected there is 5% chance that a unit may be faulty. What is the probability to one decimal place that a faulty battery was actually inspected?
I have got no brains to answer this! How this is even a expected value question? ACCA is trying to mess with my head.
They will inspect 50,000 units and of these 500 will be faulty.
They will not inspect 450,000 units and of these 22,500 will be faulty.
Therefore out of 500,000 units a total of 23,000 will be faulty.
Therefore the probability is 23,000/500,000 = 4.6%