A vendor has historically had a 15% defective rate on a particular part. They claim to have improved their process and provide their customer 10 units to be tested. The test is a pass/fail destructive test. All units pass the test.
(a) What is the probability of observing no defectives in this sample under the historical 15% defective rate?
(b) Suppose the defective rate had been reduced to 10%, now what is the probability of no defectives in this sample?
(c) Suppose the defective rate had been reduced to 5%, now what is the probability of no defectives in this sample?
(d) Is a sample of size 10 large enough to provide any practical information regarding the vendors supposed process improvement?