What sample size should company a suggest

Reference no: EM131000315

Company A launched a new process for producing silicon chips that has averaging 2.5% defective items (given this is normal for silicon chip products, the customer will accept the shipment if the defective ratio is at 3% or less). Here is the sampling plan their customer use to make the decision of accept/reject the shipment:

"For every 10,000 chips, 300 random samples will be selected and inspected, if there are more than 8 defective items in the 300 sample, the lot will be rejected."

Questions 1 - What is the probability that a 10000 pieces shipment will be rejected by their customer?

Question 2 - The goal for Company A is to make sure more than 90% of their shipment will be accepted by their customer. In order to achieve the goal, Company A wants their customer to reduce the sample size from 300 samples. What sample size should Company A suggest to their customer? Show the analysis outcome to support your suggestion.

Reference no: EM131000315

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