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:

Responsible Corporate Officer Doctrine

A legal principle that holds company executives personally liable for the illegal actions of their company if they were in a position to prevent the actions.

Personally Liable

The legal responsibility of an individual to settle a debt or obligation from their own assets.

False Pretenses

A fraudulent and intentional misrepresentation of fact made by one person to another to induce the other to give up some valuable thing or relinquish a legal right.

Ponzi Scheme

A fraudulent investment scam promising high rates of return with little risk, which pays profits to earlier investors with funds from more recent investors.