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A manufacturer of chips for electronics has a production process such that 2.3% of its chips are defective. It has a contract with a customer
A manufacturer of chips for electronics has a production process such that 2.3% of its chips are defective. It has a contract with a customer specifying that no more than 3% of the chips sold to them will be defective. Unfortunately, to test for defects the chips must be destroyed, so the customer agrees that for each batch of chips ordered, it will select 1000 to destroy and test for defects. (Orders are typically in the millions.) If more than 3% of the sample is defective, the manufacturer will have to pay a penalty. a. What is the proportion of defective chins in the population? Enter your answer as a proportion between 0 and 1, not a percentage. 0.023 Treat the 1000 chips as a sample. We're interested in the proportion of defective chips in the sample. The sample proportion is a random variable: we expect the proportion of defective chips in each sample we take to vary slightly from the population proportion. The sample proportion thus has a distribution. b. The Central Limit Theorem says that, under certain conditions, the distribution of sample proportions has a Select an answer 0 distribution with a mean of Hint and a standard deviation of Hint (round to 4 decimal places). Are the conditions met? We'll assume that one chip being defective is independent of another chip being defective. Which other condition needs to be true for the CLT to hold? 0 The product of the sample size and population proportion [1000 * 0.03] should be a 10. O The product of the sample size and population proportion [1000 * 0.023] should be 2 10. O The population proportion should be 2 0.10. O The sample should have more than 30 observations
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