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Ace Computer Manufacturer Buys Disk Drives in Lots of 5,000

question 99

True/False

Ace Computer Manufacturer buys disk drives in lots of 5,000 units from a supplier in California. The contract calls for, at most, 3 percent of the disk drives to be defective. When a shipment arrives, a sample of n = 15 parts is selected. If zero defects are found in this sample, the shipment is accepted. If 3 or more defects are found, the shipment is rejected and sent back to the supplier. If the number of defects found is 1 or 2, a second sample of 15 parts is selected. If this sample yields 1 or fewer defects, the shipment is accepted; otherwise the shipment is rejected. Based on a binomial distribution, the probability that Ace will reject a shipment of parts that meets the contract requirements is approximately 0.0355.

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Definitions:

Average Scores

A statistical measure that represents the sum of all values in a set divided by the number of values, often used to find the central tendency of a data set.

Mean, Median, Mode

Central tendency measures in statistics: Mean is the average, median is the middle value when data is ordered, and mode is the most frequently occurring value.

Median

The midpoint of a set of scores.

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