Question
A lumber company manufactures plywood at one if its plants. Plywood contains minor imperfections that can be repaired with small plugs. One customer will accept
A lumber company manufactures plywood at one if its plants. Plywood contains minor imperfections that can be repaired with small "plugs." One customer will accept plywood with a maximum of
4 plugs per sheet on average. Suppose a shipment was sent to this customer, and when the customer inspected
2 sheets at random,
11 plugged defects were counted. What is the probability of observing
11 or more plugged defects if in fact the
4 average per sheet is being satisfied? Comment on what this probability implies about whether the company is meeting the
4 per sheet defect rate.
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