First we need to find what percent of chips are defective from Japan
0.38(0.018)
second we need to find what percent of chips are defective from America
(Since 38 percent of chips are made in Japan then the remaining 62 percent are made in the USA)
0.62(0.011)
Add both probabilities together to get the total probability that the chips are defective
0.38(0.018)+0.62(0.011)=0.0136
or 1.36 percent of chips manufactured are defective.