A cell phone company buys computer chips from a supplier. the supplier sends a shipment containing 3% defective chips. each cell phone uses 3 chips selected independently. what is the probability that all 3 chips will work properly?

The solution for the problem is:

Since the supplier sends a shipment containing 3% defective chips, the probability of selecting a good chip is 97% =.97

Cancelling for the slight change in percentages when a chip is selected, the chances of selecting 3 good ones in a row is:

.97 *.97 *.97 =.9127 = 91.27%