Suppose that chips for an integrated circuit are tested and that the probability
that they are detected if they are defective is $0.95$, and the probability that
they are
declared sound if in fact they are sound is $0.97$. If .5% of the chips are
faulty, what
is the probability that a chip that is declared faulty is sound?
What i tried
Let $A_1$ be the event that the chips are faulty
Let $A_2$ be the event that the chips are sound
Let $B$ be the event that the chips are declared faulty
Using Baytes formula for conditional Probaility
$$P(A_{2}/B)=\frac{P(B/A_{2}).P(A_{2})}{P(B/A_{2}).P(A_{2})+P(B/A_{1}).P(A_{1})}$$
Plugging in the values to the formula
I got $$P(A_{2}/B)=\frac{(0.05).(0.995)}{(0.05).(0.995)+(0.95).(\frac{0.5}{100})}$$
Howver i dont seem to get the right answer. I know the right answer is 0.863. Could anyone explain this question. Thanks