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Problem-thermal-powered fans to sit on wood-burning stoves

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Reference no: EM131654742

Question: A large mail-order company has placed an order for 5,000 thermal-powered fans to sit on wood-burning stoves from a supplier in Canada, with the stipulation that no more than 2% of the units will be defective. To check the shipment, the company tests a random sample of 400 fans and finds 11 defective. Should this sample evidence lead the company to conclude the supplier has violated the terms of the contract?

Reference no: EM131654742

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