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Discrete Probability Distributions Gateway 2000 Inc.

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Gateway 2000, Inc., receives large shipments of microprocessors from Intel Corp. It must try to ensure that the proportion of microprocessors that are defective is small. Suppose Gateway decides to test five microprocessors out of a shipment of thousands of them. Suppose that if at least one of the microprocessors is defective, the shipment is returned.
a. If Intel Corp.'s shipment contains 10% defective microprocessors, calculate the probability the entire shipment will be returned.
b. If Intel and Gateway agree that Intel will not provide more than 5% defective chips, calculate the probability that the entire shipment will be returned even though only 5% are defective.
c. Calculate the probability that the entire shipment will be kept by Gateway even though the shipment has 10% defective microprocessors

Solution Preview

Gateway 2000, Inc., receives large shipments of microprocessors from Intel Corp. It must try to ensure that the proportion of microprocessors that are defective is small. Suppose Gateway decides to test five microprocessors out of a shipment of thousands of them. Suppose that if at least one of the microprocessors is defective, the shipment is returned.
a. If Intel Corp.'s shipment contains 10% ...

Solution Summary

The solution calculates the probabilities of the shipments being returned.

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