United Manufacturing and Supply makes sprinkler valves for use in residential sprinkler systems. United entered into a

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United Manufacturing and Supply makes sprinkler valves for use in residential sprinkler systems. United entered into a contract to supply 40,000 sprinkler valves. The contract called for at least 97% of the valves to be free of defects. Before shipping the valves, United managers tested 200 randomly selected valves and found 190 defect-free valves in the sample. The managers wish to know the probability of finding 190 or fewer defect-free valves if in fact the population of 40,000 valves is 97%

defect-free. Discuss how they could use this information to determine whether to ship the valves to the customer.

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Business Statistics

ISBN: 9781292220383

10th Global Edition

Authors: David Groebner, Patrick Shannon, Phillip Fry

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