SOLUTION: Suppose that 5% of all items coming off a production line are defective. Assume the manufacturer packages his items in boxes of six and guarantees "double your money back" if more
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Question 280328: Suppose that 5% of all items coming off a production line are defective. Assume the manufacturer packages his items in boxes of six and guarantees "double your money back" if more than 2 items in a box are defective. On what percentage of the boxes will the manufacturer have to pay double money back? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Suppose that 5% of all items coming off a production line are defective.
Assume the manufacturer packages his items in boxes of six and guarantees "double your money back" if more than 2 items in a box are defective.
On what percentage of the boxes will the manufacturer have to pay double money back?
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Binomial Problem with n= 6; p = 0.05 ; 3<= x <=6
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Ans: P(3<= x <=6) = 1 - binomcdf(6,0.05,2)
= 1 - 0.9978
= 0.0022 = 0.22%
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Cheers,
Stan H.
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