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Application of Binonomial Distribution

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Can you please explain to me how to do this; I'm so lost.

"As a quality engineer working on the Rangdo production line, you have determined that the probability of producing a defective part is 6%. You want to develop a plan to monitor the quality of this line. Your idea is to take a sample of 20 parts every hour and determine the number of defectives. How many defectives do you need to find (or more) in a sample of 20 so that you will shut down the line. You want to be 95% sure that there is a real problem beyond random noise before you shut down the line."

Use Excel's binomial function to determine the answer.

Please explain step by step and how the answered is figured.

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Solution Summary

The solution gives detailed steps on applying the density function of binomal distributon. All formula and calculations are shown and explained.

Solution Preview

Let X be the number of defective parts, from then question, X has binomial distribution with n=20 and p=0.06. Please note that x=0,1,2,...,20

Since we want to be 95% ...

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