Question: A company employs the following sampling plan: It draws a sample of 10 percent of the lot being inspected. If 1 percent or less of the sample is defective, the lot is accepted. Otherwise the lot is rejected.
a. If a lot contains 500 items of which 10 are defective, what is the probability that the lot is accepted?
b. If a lot contains 1,000 items of which 20 are defective, what is the probability that the lot is accepted?
c. If a lot contains 10,000 items of which 200 are defective, what is the probability that the lot is accepted?