Geepo
Oct 28, 2013, 02:56 AM
A car manufacturer who is producing cars at the rate of 4000 cars a month requires to procure ignition equipment from vendors. The company has a policy of placing orders for 12000 ignition equipment every time they order. The vendor has indicated that 3 % of the ignition equipment is likely to be faulty in each shipment. Since it is not possible to test every ignition equipment by the car manufacturer, the manufacturer decides to randomly sample 200 ignition equipment and if more than 2 of them are found to be defective the entire batch of order shall be returned back.
a) What sampling method would you suggest for the car manufacturer?
b) What is the probability that the batch will be returned back to the vendor.
a) What sampling method would you suggest for the car manufacturer?
b) What is the probability that the batch will be returned back to the vendor.