Let the Random Variable X Denote the Number of Defective $n \leq .05 \mathrm {~N}$

question 22

Multiple Choice

Let the random variable X denote the number of defective items in the lot, A denote the event that the lot is accepted, and p denote the proportion of defective items in the lot. Which of the following statements is not true?

• A) If the sample size n is large relative to the lot size N, then the probability of accepting the lot, P(A), is calculated using the hypergeometric distribution.
• B) When the sample size n is small relative to the lot size N (the rule of thumb suggested in your text was \(n \leq .05 \mathrm {~N}\)
• ), then the probability of accepting the , P(A), is calculated using the binomial distribution.
• C) If the probability of accepting the lot, P(A), is large only when p is small (this, of course, depends on the specified critical value c), then the Poisson approximation to the binomial distribution is justified.
• D) The larger value of p, the larger the probability P(A) of accepting the lot.
• E) All of the above statements are true.

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Definitions:

Repositioning

The strategy of changing the marketing mix for a product or brand to target new markets or change the product's image.

Product Life Cycle Shapes

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