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

 

 

Operation Management, Management Studies

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