Question
Michael has been cooking a lot over a past year and he is expert in making garlic sauce that he stores in pressure-sealed jars. He
Michael has been cooking a lot over a past year and he is expert in making garlic sauce that he stores in pressure-sealed jars. He decided to open a small industry of making garlic sauce at home. The ingredients for a jar of his sauce costs about $1.50 which they sell for $6.50 and other costs are negligible. He got a contract with a grocery store to sell 5,000 jars this season.
The failure rate of his jars is about 20% which means that the seal on a particular jar does not hold and the whole thing needs to be thrown out because cleaning or reusing the jars is too expensive and time consuming.
He found a manufacturer who claims that a new process that uses more expensive lids will fail less than 2% of the time.However, the new process would increase cost 25 cents per unit. Michael experimented 100 of these and found that only 3 of them failed.
Should he switches to the new jars? If it is not possible, take the process as far as you can and explain why you cannot answer it.
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