A Production Process Produces 2% Defective Parts

question 69

Short Answer

A production process produces 2% defective parts. A sample of 5 parts from the production is selected. What is the probability that the sample contains exactly two defective parts? Use the binomial probability function and show your computations to answer this question.

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Definitions:

Qualified Indorsement

An endorsement on a negotiable instrument that limits the liability of the endorser or specifies particular conditions for the endorsement's validity.

Liability

A legal responsibility or obligation, often involving financial compensation, that arises from actions or agreements.

Payable to Cash

A term indicating that a check or draft is to be paid to the bearer or holder, making it easily transferable.

Negotiated

Refers to the process where parties discuss terms and come to a mutual agreement.