Volvo Cars, a Swedish luxury vehicles company, purchases computer process chips from two suppliers, and the company
Question:
Volvo Cars, a Swedish luxury vehicles company, purchases computer process chips from two suppliers, and the company is concerned about the percentage of defective chips. A review of the records for each supplier indicates that the percentage defectives in consignments of chips follow normal distributions with the means and standard deviations given in the following table. The company is particularly anxious that the percentage of defectives in a consignment not exceed 4% and wants to purchase from the supplier that’s more likely to meet that specification. Which supplier should be chosen?
Mean Standard Deviation Investment A 3.4 0.3 Investment B 3.2 0.5
Step by Step Answer:
Statistics For Business And Economics
ISBN: 9781292436845
10th Global Edition
Authors: Paul Newbold, William Carlson, Betty Thorne