Ten Percent of the Items Produced by a Machine Are

question 10

Short Answer

Ten percent of the items produced by a machine are defective. A random sample of 100 items is selected and checked for defects.
a.Determine the standard error of the proportion.
b.What is the probability that the sample will contain more than 2.5% defective units?
c.What is the probability that the sample will contain more than 13% defective units?

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Definitions:

Plantwide Factory Overhead Rate

A single overhead absorption rate calculated by dividing total factory overheads by total machine hours or labor hours, applied uniformly across all products and services.

Machine Hours

A measure of the amount of time a machine is operated, used in costing and operational efficiency analysis.

Single Plantwide Factory Overhead Rate

A method of allocating manufacturing overhead costs uniformly across all units produced within a single factory.

Direct Labor Hours

The total hours worked by employees who are directly involved in the production of goods or services.