Suppose that a computer chip company has just shipped 10,000 computer chips to a computer company. Unfortunately, 50 of the chips are defective.
(a) Compute the probability that two randomly selected chips are defective using conditional probability.
(b) There are 50 defective chips out of 10,000 shipped. The probability that the first chip randomly selected is defective is 50/10,000 = 0.005 = 0.5%. Compute the probability that
two randomly selected chips are defective under the assumption of independent events. Compare your results to part (a).
Conclude that, when small samples are taken from large populations without replacement, the assumption of independence does not significantly affect the probability.