Hewlett-Packard receives large shipments of microprocessors from Intel Corp. It must try to ensure the proportion of

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Hewlett-Packard receives large shipments of microprocessors from Intel Corp. It must try to ensure the proportion of microprocessors that are defective is small. Suppose HP decides to test five microprocessors out of a shipment of thousands of these microprocessors.

Suppose that if at least one of the microprocessors is defective, the shipment is returned.

a. If Intel Corp.’s shipment contains 10% defective microprocessors, calculate the probability the entire shipment will be returned.

b. If Intel and HP agree that Intel will not provide more than 5% defective chips, calculate the probability that the entire shipment will be returned even though only 5% are defective.

c. Calculate the probability that the entire shipment will be kept by HP even though the shipment has 10% defective microprocessors.

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Business Statistics

ISBN: 9781292220383

10th Global Edition

Authors: David Groebner, Patrick Shannon, Phillip Fry

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