Acceptance sampling is a procedure that tests some of the items in a lot or shipment and decides to accept or reject the entire lot based on the results of testing the sample. In a simple case, each tested item is determined to be either acceptable or defective. Suppose a purchaser orders 100 items, tests 4 of them, and rejects the lot if one or more of those four are found to be defective.
a) If 10% of the items in the lot of 100 are defective, what is the probability that the purchaser will reject the shipment?
b) Make a graph showing how the probability of rejection is related to the percent of defective items in the shipment.