"MagTek" electronics has developed a smart phone that does things that no other phone yetreleased into the market-place will do. The marketing department is planning to demonstratethis new phone to a group of potential customers, but is worried about some initial technicalproblems which have resulted in 0.2% of all phones malfunctioning. The marketing executive is planning on randomly selecting 60 phones for use in the demonstration but is worried because it is very important that every single one functions OK during the demonstration. The executive believes that whether or not any one phone malfunctions is independent of whether or not any other phone malfunctions and is convinced that the probability that any one phone will malfunction is definitely 0.002. Assuming the marketing executive randomly selects 60 phones for use in the demonstration:

(a) What is the probability that no phones will malfunction? [If you use anyprobability distribution/s, you are required justify the requirements forparticular distributions are satisfied]

(b) What is the probability that at most one phone will malfunction?

(c) The executive has decided that unless the probability of there being nomalfunctions is greater than 90%, he will cancel the demonstration. Shouldhe cancel the demonstration or not? Explain your answer.

Posted Date: 5/9/2013 3:45:49 AM | Location : United States

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