If the policy changes so that a shipment is accepted if one


Using excel,suppose that, on average, 4 percent of all DVD drives received by a computer company are defective. The company has adopted the following policy: Sample 50 DVD drives in each shipment, and accept the shipment if none are defective. Using this information, determine the following:

a. What fraction of shipments will be accepted?

b. If the policy changes so that a shipment is accepted if one or no DVD drive in the sample is defective, what fragment of shipments will be accepted?

c. What is the probability that a sample size of 50 will contain at least 10 defective DVD drives?

d. How should the company change its policy so that 50 percent of shipments are acceptable?

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Business Economics: If the policy changes so that a shipment is accepted if one
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