SOLUTION: The Weyerhauser Lamber Company headquatered in Tacoma,Washington, is one of the largest timber and wood product companies in the world. Weyerhauser manufactures plywood at one of i

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Question 861085: The Weyerhauser Lamber Company headquatered in Tacoma,Washington, is one of the largest timber and wood product companies in the world. Weyerhauser manufactures plywood at one of its Oregon plants. Plywood contains minor imperfections that can be repair with small "plugs". One customer will accept plywood with a maximum of 3.5 plugs per sheet on average. Suppose a shipment was sent to this customer and when the customer inspected two sheets at random,ten plugged defects were counted. What is the probability of observing 10 or more plugged defects if in fact the 3.5 average per sheet is being satisfied? Comment on what this probability implies about whether you think the company is meeting the 3.5 per sheet defect rate.

Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 
Hi,
average 3.5/sheet
customer 5/sheet Apples to Apples (10 was for 2 sheets)
POISSON DISTRIBUTION
P(X > 5) = .1424
Suggest average is larger than 3.5/sheet