- What is a random variable?
- How would you differentiate a discrete from a continuous random variable?
A laptop manufacturing company has implemented a 2-step process to test the quality of each production batch. In the first step, a technician randomly selects 15 laptops from the batch and determines whether they meet specifications. The batch is considered acceptable provided no more than 1 laptop fails to meet specifications. Otherwise, the entire batch must be tested in the second step. Historical data shows that 95% of the laptops produced adhere to specifications. Discuss the following:
- What are the 4 characteristics of a binomial experiment?
- Can we use a binomial distribution to model this process?
- What is the probability that the entire batch unnecessarily has to be tested if in fact 95% of its laptops conform to specifications? (Hint: Use Excel’s =BINOMDIST() function to find the probability.)
- What is the probability that the batch is incorrectly accepted if only 75% of its laptops conform to specifications?