When purchasing bulk orders of batteries, a toy manufacturer uses this acceptance sampling plan: Randomly select and test 37 batteries and determine whether each is within specifications. The entire shipment is accepted if at most 3 batteries do not meet specifications. A shipment contains 3000 batteries, and 2% 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?
The probability that the whole shipment is accepted is computed here as:
= Probability that there are 0, 1, 2 or 3 defective ones in the 37 selected from 3000 batteries
Total defective ones from 3000 batteries is computed here
as:
= 0.02*3000 = 60
Therefore, the probability here is computed as:
Therefore 0.9942 is the required probability here.
As the probability here is more than 0.99, therefore almost all such shipments would be accepted.
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