25 components are randomly chosen and tested; if there are no more than 3 defective components, the entire batch is accepted. The probability is it that the shipment will be accepted is 0.7323.
Given that,
An organization utilizes the following acceptance sampling strategy for ordering shipments of 600 machine parts: 25 components are randomly chosen and tested; if there are no more than 3 defective components, the entire batch is accepted. This specific component is known to have a 4% fault rate.
We have to find how probability is it that the shipment will be accepted.
By binomial we get,
Binomial Problem:
n = 25 ; p = 0.04
P(0<= p <= 2)
= 0.7323
Therefore, The probability is it that the shipment will be accepted is 0.7323.
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