Plywood contains minor imperfections that can be repaired with small plugs. One customer will accept plywood with

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Plywood contains minor imperfections that can be repaired with small “plugs.” One customer will accept plywood with a maximum of 3.5 plugs per sheet on average. Suppose a shipment was sent to this customer, and when the customer inspected two sheets at random, 10 plugged defects were counted. What is the probability of observing 10 or more plugged defects if in fact the 3.5 average per sheet is being satisfied?

Comment on what this probability implies about whether you think the company is meeting the 3.5 per sheet defect rate.

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Business Statistics

ISBN: 9781292220383

10th Global Edition

Authors: David Groebner, Patrick Shannon, Phillip Fry

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