Suppose that Specialty Toys decides to order 15000 units, and you learn that approximately 1% of Weather Teddies ordered from the manufacturer are defective. You are interested in the number of the defective units.

What setting does this problem fit?

Poisson

Normal

Binomial

Uniform

What would be the standard deviation of the number of defective units? Give your answer to 2 decimal places. (Average defective units are 150

Management wants to know the probability more than 175 units will be defective. Calculate this probability using the Binom.Dist function in Excel. Give your answer to four decimal places.

Now use the Normal approximation to the binomial (Norm.dist) to calculate the probability that more than 175 units will be defective. Give your answer to four decimal places.