When purchasing bulk orders of batteries, a toy manufacturer uses this acceptance sampling plan: Randomly select and test 55 batteries and determine whether each is within specifications. The entire shipment is accepted if at most 2 batteries do not meet specifications. A shipment contains 5000 batteries, and 1% of them do not meet specifications. What is the probability that this whole shipment will be accepted? Will almost all such shipments be accepted, or will many be rejected?
Answer)
As there are fixed number of trials and probability of each and every trial is same and independent
Here we need to use the binomial formula
P(r) = ncr*(p^r)*(1-p)^n-r
Ncr = n!/(r!*(n-r)!)
N! = N*n-1*n-2*n-3*n-4*n-5........till 1
For example 5! = 5*4*3*2*1
Special case is 0! = 1
P = probability of single trial = 0.01 (1%)
N = number of trials = 55
R = desired success = at most 2
After substitution
Required probability is = P(0) + P(1) + P(2) = 0.98217123986
Yes as the probability is quite high
Almost all shipments will be accpeted
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