The Binomial Distribution Is Frequently Used to Help Companies Decide

question 26

Essay

The binomial distribution is frequently used to help companies decide whether to accept or reject a shipment based on the results of a random sample of items from the shipment. For instance, suppose a contract calls for, at most, 10 percent of the items in a shipment to be red. To check this without looking at every item in the large shipment, a sample of n = 10 items is selected. If 1 or fewer are red, the shipment is accepted; otherwise it is rejected. Using probability, determine whether this is a "good" sampling plan. (Assume that a bad shipment is one that has 20 percent reds.)

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Definitions:

Fundraising Scaffold

A strategic framework or support structure designed to enhance and guide the process of raising funds.

Gift Standards Chart

A guideline or tool used by nonprofit organizations to categorize and manage donations effectively, ensuring that gifts are recorded, acknowledged, and utilized according to donor intentions.

Quiet Phase

A period in fundraising, particularly in capital campaigns, during which an organization seeks major gifts in private before announcing the campaign publicly.

Public Phase

A stage in fundraising campaigns, especially in capital campaigns, where organizations seek wider public contributions after securing initial major gifts.