SOLUTION: The job you are thinking of taking depends on the widgets in your assembly process working as needed. Your prospective boss gets irate and starts firing people if more than 8 widge

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Question 1002339: The job you are thinking of taking depends on the widgets in your assembly process working as needed. Your prospective boss gets irate and starts firing people if more than 8 widgets fail out of any one batch of 100. The proportion of bad widgets produced in your suppliers factory in 5%.
a) Should you take the job?
b)Suppose you know a new supplier whose proportion rate is 2%. How would you convince the boss to go with you and this supplier?
Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website!
The job you are thinking of taking depends on the widgets in your assembly process working as needed.
Your prospective boss gets irate and starts firing people if more than 8 widgets fail out of any one batch of 100. The proportion of bad widgets produced in your suppliers factory in 5%.
Sketch a normal curve with mean = 0.05 and std = sqrt(0.05*0.95) = 0.2179
Find P(x < 8) when n = 100
P(x < 0.08) = (0.08-0.05)/0.2179/sqrt(100) = 1.3768
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The P(you will be fired) = P(z > 1.3768) = 0.084 or 8.4%
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a) Should you take the job?
Sounds reasonable.
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b)Suppose you know a new supplier whose proportion rate is 2%. How would you convince the boss to go with you and this supplier?
What other info do you have ??
Cheers,
Stan H.