Question

A construction company buys screws in bulk. A new supplier approaches the company with an extremely...

A construction company buys screws in bulk. A new supplier approaches the company with an extremely low price, but acknowledges that they are still scaling up their production. Their most recent production run was 100,000 screws and data from their quality control process indicate that 0.3% of the screws have production faults.

a) What is the probability that a box of 1200 screws has exactly 1 faulty screw?

b) What is the probability that a small order of 4800 screws has fewer than 10 faulty

screws?

c) What is the probability that a larger order of 18000 screws has more than 100 faulty

screws?

Homework Answers

Answer #1

a)

expected faulty screw =np=1200*0.3%=3.6

hence  probability that a box of 1200 screws has exactly 1 faulty screw =e-3.6*3.61/1!=0.0984

b)

n= 4800 p= 0.0030
here mean of distribution=μ=np= 14.4
and standard deviation σ=sqrt(np(1-p))= 3.7890

probability that a small order of 4800 screws has fewer than 10 faulty screws:

probability = P(X<9.5) = P(Z<-1.29)= 0.0985

c)

here mean of distribution=μ=np= 54
and standard deviation σ=sqrt(np(1-p))= 7.3374

probability that a larger order of 18000 screws has more than 100 faulty screws:

probability = P(X>100.5) = P(Z>6.34)= 1-P(Z<6.34)= 1-1= 0.0000
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
7. The J.O. Supplies Company buys calculators from a Korean supplier. The probability of a defective...
7. The J.O. Supplies Company buys calculators from a Korean supplier. The probability of a defective calculator is 30%. If 14 calculators are selected at random, what is the probability that more than 6 of the calculators will be defective? 8. An important part of the customer service responsibilities of a cable company relates to the speed with which trouble in service can be repaired. Historically, the data show that the likelihood is 0.70 that troubles in a residential service...
1.Ford initially tried to use vertical integration to control all aspects of the production and sale...
1.Ford initially tried to use vertical integration to control all aspects of the production and sale of its automobiles. Later, Ford abandoned vertical integration and adopted a strategy of partnerships with key suppliers. The partnership arrangements were expected to cut costs for Ford but still permit the suppliers to enjoy profits at the level of the industry standard. How would it be possible for a supplier’s profits to be preserved while Ford’s costs decreased? Select one: a. Ford would agree...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From the April 2004 Issue Save Share 8.95 In 1991, Progressive Insurance, an automobile insurer based in Mayfield Village, Ohio, had approximately $1.3 billion in sales. By 2002, that figure had grown to $9.5 billion. What fashionable strategies did Progressive employ to achieve sevenfold growth in just over a decade? Was it positioned in a high-growth industry? Hardly. Auto insurance is a mature, 100-year-old industry...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT