The one-dimensional, two-component linear Ising chain with nearest-neighbor interaction is formulated by using the transfer matrix method, with emphasis placed on the case in which the two components are randomly distributed along the chain. Certain recurrence formulas appear such that themth-order partition function of one of the components is dependent on the lower-order ones. The algorithm provides a working basis for discussing the thermodynamic and magnetic functions with various concentrations of one of the components. An exact expression for the partition function is derived for a linear chain which is composed of a periodic distribution of the two components. The construction of a periodic sequence which would approximate a random distribution of the two components is briefly discussed.