Big Bang Corporation produces shotgun shells in batches of 300. A sample of 10 is tested from each batch. If more than one defect is found in the sample, the entire batch is tested. The quality control expert at Big Bang Corporation knows from past experience that when production is running smoothly 1% of the shells are actually defective.
Use this information and what you have learned about probability and statistics in this class to answer the following problems/questions:
- Determine the probability of having no defective shells in the sample.
- Determine the probability of having 1 defective shell in the sample.
- Determine the probability of having more than 1 defective shell in the sample.
- Why do you think the Big Bang Corporation has a policy of testing the entire batch (i.e. all 300) if more than 1 defect is found in the sample of 10?