Each week American Stores receives a shipment from a supplier. The contract specifies that the maximum allowable percent defective is 5 percent. When the shipment arrives, a sample of 20 parts is randomly selected. If 2 or more of the sampled parts are defective, the shipment is rejected and returned to the supplier. Assume that a shipment arrives that actually has 4 percent defective parts and the distribution of defective parts is described by a binomial distribution. The probability that the shipment is accepted is approximately 0.81

Question

Quizplus · Accepted Answer

The probability of accepting the shipment is the probability that 0 or 1 part is defective in the sample of 20. Using the binomial distribution with p = 0.04, the probability of 0 defects is approximately 0.442, and the probability of 1 defect is approximately 0.369. Adding these gives approximately 0.811.

Each Week American Stores Receives a Shipment from a Supplier