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The AJAX Microchip Company produces memory chips for personal computers. The company's entire pro­ duction is generated from two assembly lines, labeled "I" and "II." Assembly line I uses more rapid assembly techniques and produces 80 percent of the company's output, while assembly line II produces 20 percent of the output. The probability that a memory chip pro­ duced on assembly line I is defective is .05, while the corresponding probability for assembly line II is .01.

A memory chip is chosen at random from a bin con­taining a day's production. Given that the chip is found to be defective, what is the probability that the chip was made on assembly line II? (Hint: Can you put this problem in a form for which Bayes rule would be ap­ plicable?)

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