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Quality of an electronic part is the probability that a random selection of any part from a large production lot functions to the specification. A random sample of 1000 parts was tested and 27 parts were found to be defective. Manufacturer of this part has advertised 98% quality target for this part.
a. What is the mean and the standard deviation of defects of a random observation of this part b. What is the probability of finding 27 defects in 1000 if manufacture's claim was true? c. What is the probability of more than 27 defects in 1000 observations?
Should a U.S. based investor Covered interest arbitrage and invest in Singapore? Answer
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