Answer Happy

Question 3. [3 + 3 + 3 pts] A produce wholesaler applies the following simple rule to decide whether or not to accept a produce delivery: For every delivery of 100 items, the wholesaler draws a sub-sample of size 10. If one or more items are defective, the delivery is rejected. (a) What is the probability that a delivery of 100 items of which 10% are defective is rejected by the wholesaler? Use the appropriate random variable to answer this question. (b) If items are drawn one after another, occasionally a decision can be reached before the 10th draw. Compute the probability that a decision is made before or at the kth draw. Use the appropriate random variable to answer this question. (c) Provide a formula to approximate the probability of part (a). What is the approximate probability? a (Hint: “drawing a sub-sample of size 10” means to draw 10 items at once, i.e. without replacement and without order.)