The batch is accepted if all 3 tested instruments are identified as having pure tone. This can happen in two ways: (1) All 3 are actually pure and are identified as pure; or (2) at least one is impure, but all are identified as pure.
Let I denote an impure instrument and P denote a pure instrument. Let I′ denote that an instrument is identified as impure, and P′ denote that an instrument is identified as pure. The probability of selecting a pure instrument is 100100−4=10096=0.96. The probability of selecting an impure instrument is 1004=0.04. P(P′∣P)=1−0.01=0.99. This is the probability that a pure instrument is identified as pure. P(P′∣I)=1−0.95=0.05. This is the probability that an impure instrument is identified as pure. For the batch to be accepted, we need all 3 instruments tested to be identified as pure. Let A be the event that the batch is accepted.
There are (3100) ways to choose 3 instruments. The number of ways to select 3 pure instruments is (396)=3⋅2⋅196⋅95⋅94=142880. The number of ways to select 2 pure instruments and 1 impure instrument is (296)(14)=296⋅95⋅4=18240. The number of ways to select 1 pure instrument and 2 impure instruments is (196)(24)=96⋅24⋅3=96⋅6=576. The number of ways to select 3 impure instruments is (34)=4. Total ways to select 3 instruments is (3100)=3⋅2⋅1100⋅99⋅98=161700. Note that 142880+18240+576+4=161700, as expected. P(all 3 pure)=(3100)(396)=161700142880≈0.8836. The probability that all 3 are pure and all identified as pure is 0.8836⋅(0.99)3≈0.8576 P(2 pure, 1 impure)=(3100)(296)(14)=16170018240≈0.1128. The probability that 2 are pure, 1 is impure, and all are identified as pure is 0.1128⋅(0.99)2⋅(0.05)≈0.0055. P(1 pure, 2 impure)=(3100)(196)(24)=161700576≈0.0036. The probability that 1 is pure, 2 are impure, and all are identified as pure is 0.0036⋅(0.99)⋅(0.05)2≈0.000009. P(all 3 impure)=(3100)(34)=1617004≈0.000025. The probability that all 3 are impure and all are identified as pure is 0.000025⋅(0.05)3=0.000025⋅0.000125≈0.0000000031. The probability the batch is accepted is approximately 0.8576+0.0055+0.000009+0.0000000031≈0.8631. Alternative solution:
We want to find the probability that all 3 selected instruments are identified as having pure tone. This is the same as the probability that we do not reject the batch.
P(accept)=P(all 3 identified as pure). P(all 3 identified as pure)=∑k=03P(all 3 identified as pure∣k impure)P(k impure), where k is the number of impure instruments chosen. P(0 impure)=(3100)(396)=161700142880. P(1 impure)=(3100)(14)(296)=16170018240. P(2 impure)=(3100)(24)(196)=161700576. P(3 impure)=(3100)(34)=1617004. P(all 3 identified as pure∣0 impure)=(0.99)3=0.970299. P(all 3 identified as pure∣1 impure)=(0.99)2(0.05)=0.049005. P(all 3 identified as pure∣2 impure)=(0.99)(0.05)2=0.002475. P(all 3 identified as pure∣3 impure)=(0.05)3=0.000125. P(accept)=(161700142880)(0.970299)+(16170018240)(0.049005)+(161700576)(0.002475)+(1617004)(0.000125)=0.857613+0.005524+0.0000088+0.0000000031=0.863146.