Estimate the non-conforming rate

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A manufacturer of an electrical component claims to have made changes in their manufacturing process to improve the quality of the component. Previously the component had a nonconforming rate of 10%. The supplier would like to provide you with 8 units for destructive testing to demonstrate that the nonconforming rate is now below 10%.

(a) If the nonconforming rate has dropped to say 8%, what is the proba­ bility that you would see no non-conforming items in a sample of size 8?

(b) If the non-conforming rate has increased to say 12% what is the prob­ ability that you would see no non-conforming items in a sample of size 8?

(c) How large of a sample would you need to estimate the non-conforming rate to within 5% with 95% confidence?

Reference no: EM131015197

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