A Major Textbook Publisher Has a Contract with a Printing

question 103

Multiple Choice

A major textbook publisher has a contract with a printing company. Part of the contract stipulates that no more than 5 percent of the pages should have any type of printing error. As a quality control measure, the publisher periodically selects a random sample of n = 100 pages. Then, depending on the proportion of pages with errors, they either say nothing to the printer or they complain that the quality has slipped. Suppose the publisher wants no more than a .10 chance of mistakenly blaming the printer for poor quality, what should the cut-off proportion be?

• A) About 0.0279
• B) Approximately 0.0779
• C) About 0.0221
• D) About 0.10

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Definitions:

Mutual Mistake

A misunderstanding among all parties involved in a contract, making the contract potentially voidable.

Basic Assumption

An underlying assumption that is accepted as true without proof as the basis for argument or action.

Avoided Contract

A contract that has been declared null and void, often due to legal deficiencies or mutual agreement.

Identity, Existence

The concept or fact of being the same entity as described or claimed, often used in legal contexts to determine the authenticity or truthfulness of a person or entity.