A manufacturing process produces semiconductor chips with a known failure rate of 7.5%. If a random sample of 280 chips is selected, approximate the probability that at most 19 will be defective. Use the normal approximation to the binomial with a correction for continuity. Round your answer to at least three decimal places. Do not round any intermediate steps.
Answer)
N = 280
P = 0.075
First we need to check the conditions of normality that is if n*p and n*(1-p) both are greater than 5 or not
N*p = 21
N*(1-p) = 259
Both the conditions are met so we can use standard normal z table to estimate the probability
Z = (x - mean)/(s.d)
Given mean = n*p = 280*0.075 = 21
S.d = β{n*p*(1-p)} = 4.40738017420
P(x<=19)
By continuity correction
P(x<19.5)
Z = (19.5 - 21)/4.40738017420
Z = -0.34
From Z table, P(z<-0.34) = 0.3669
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