A maker of personal computers, Noname, purchases 64K DRAM chips from two different manufacturers, A and B. Noname uses the following sampling plan: A sample of 10 percent of the chips is drawn and the lot is rejected if two or more defective chips are discovered. The two manufacturers supply the chips in lots of 100 and 1,000, respectively. a. For each manufacturer, determine the true proportion of defectives in the lot that would result in 90 percent of the lots being accepted. You may use the Poisson approximation for your calculations. b. Would you say that this plan is fair?
A maker of personal computers, Noname, purchases 64K DRAM chips from two different manufacturers, A and B. Noname uses the following sampling plan: A sample of 10 percent of the chips is drawn and the lot is rejected if two or more defective chips are discovered. The two manufacturers supply the chips in lots of 100 and 1,000, respectively. a. For each manufacturer, determine the true proportion of defectives in the lot that would result in 90 percent of the lots being accepted. You may use the Poisson approximation for your calculations. b. Would you say that this plan is fair?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A maker of personal computers, Noname, purchases 64K DRAM chips from two different manufacturers, A and B. Noname uses the following sampling plan: A sample of 10 percent of the chips is drawn and the lot is rejected if two or more defective chips are discovered. The two manufacturers supply the chips in lots of 100 and 1,000, respectively.
a. For each manufacturer, determine the true proportion of defectives in the lot that would result in 90 percent of the lots being accepted. You may use the Poisson approximation for your calculations.
b. Would you say that this plan is fair?
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