THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING

question 165

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING:
As a purchasing agent,you are responsible for selecting sources of supply for manufactured components to use in your firm's production process.The salesman for a certain supplier has indicated that they can supply an electronic sub-assembly that has a defect rate of 1.1%-well below your current supplier's defect rate.You accept 100 sub-assemblies for evaluation,and find that there were four defects.
-Using the Poisson approximation to the binomial,how likely is it to get four or less defects out of 100?

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Definitions:

Economic Efficiency

A situation in which resources are allocated in the most beneficial way from the standpoint of society, maximizing production and minimizing waste.

Clayton Act

A U.S. antitrust law enacted in 1914, aimed at promoting competition by preventing mergers and acquisitions that could potentially reduce competition.

Market Share

The portion of a market controlled by a particular company, often expressed as a percentage of total sales in that market.

Patentable Technologies

Innovations or inventions that meet specific criteria for novelty, non-obviousness, and utility, thus eligible for patent protection.