Suppose that a computer chip company has just shipped 10 comma 000 computer chips to a computer company. unfortunately, 60 of the chips are defective. (compute the probability that two randomly selected chips are defective using conditional probability.

Total number of chips = 10,000
Number of defective chips = 60

Probability of selecting a chip which is defective = 

When one defective chip is selected, the number of remaining defective chips will be 59, and total number of chips in the sample will be 9,999.

So, probability of selecting the second defective chip =  

The probability that two randomly selected chips are defective will be the product of above two probabilities.

So,

The probability that two randomly selected chips are defective will be:
 

Therefore there is a 0.0000354 probability of selective two defective chips.

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