A manufacturing process produces semiconductor chips with a known failure rate of 6.9%. If a random sample of 300 chips is selected, approximate the probability that fewer than 17 will be defective. Use the normal approximation to the binomial with a correction for continuity. (at least 3 decimal places)
Solution :
Given that,
p = 6.9%=0.069
q = 1 - p =1-0.069=0.931
n = 300
Using binomial distribution,
Mean = = n * p = 300*0.069=20.7
Standard deviation = = n * p * q = 300*0.069*0.931=4.39
Using continuity correction ,
P(x< 17 ) = P((x - ) / < (16.5-20.7) /4.39 )
= P(z < -0.96)
Using z table
Probability = 0.1685
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