Defective rate is still at 1 if in fact exactly two of the, Ask an Expert

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On average the XYZ company turns out 3000 units per day and thirty of these will be defective. Each hour a sample of size five is taken in an effort to determine whether or not the 1% defective rate is being exceeded. At 1:00 a sample of size five is taken and two are noted as being defective. What is the probability that the overall defective rate is still at 1% if in fact, exactly two of the five are defective in this sample? Should the assembly process be temporarily shut down to find out what's wrong, or not?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M986363

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