Caption: TMH Industry purchases glass containers from India for the packaging of their tires. These shipments come to TMH Industry in skids that were transported across the Pacific Ocean in giant shipping containers. When tires are shipped internationally, a small degree of defects is inevitable.
Abdul has negotiated a deal with the vendor that an overall defect rate of 5% is acceptable. If more than 5% of the tires on a given skid are defective, TMH does not have to pay for that shipment. If the defects are greater than 5%, that shipment is returned (at the shipper's expense).
Abdul: There's a possibility of an increase in demand and therefore production. Will we need more tires?
Manny: Can you take a look? I'd love to hear your thoughts.
Question:
If 20 samples of product are randomly selected and tested, what is the probability of the following:
1. Exactly two samples are defective
2. Between two and five inclusive are defective
3. Less than four are defective