A Production Process Produces 3% Defective Parts

question 3

Multiple Choice

A production process produces 3% defective parts. A sample of five parts from the production process is selected. What is the probability that the sample contains exactly two defective parts?

• A) 0.9918
• B) 0.0082
• C) 0.0003
• D) 0.9997

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Definitions:

Production

The process of creating goods and services through the combination of labor, materials, and machinery.

Subcontracting

The practice of assigning or outsourcing part of the obligations and tasks of a contract to another party, often used to leverage specialized skills or cost advantages.

Inventory

The total amount of goods or materials held in stock by a business, available for sale or use in production.

Stockouts

Occurs when a product is not available in inventory for sale or use, leading to potential loss of sales and customer dissatisfaction.