Question

In this instance a shipment of twenty items is received from ABC producers and you are...

In this instance a shipment of twenty items is received from ABC producers and you are to randomly select five of them to see if any one is defective. Your boss has given you the following information: "We know that ABC has the tendency to put four defective items in their shipment of twenty, but are trying to do better. You are to randomly check three items from the shipment and if one or more are defective you are to ship all twenty back."

Here's what you are to do:

1. Find "Hypergeometric Distribution" either in the book or on the web and read up on it ... this may not be a review for you.

2. Determine the probability that "exactly one of the three are defective if, in fact, there are only four defective items in the lot of twenty."

3. Determine the probability that "one or more of the three are defective if, in fact, there are only four defective items in the lot of twenty."

4. What conclusion can you draw using your answer to the "one or more" question?

5. If you had the power to return the shipment or not, what would you do? Why?

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