Would this be convincing evidence

Assignment Help Microeconomics
Reference no: EM131009268

1. A certain large shipment comes with a guarantee that it contains no more than 15% defective items. If the proportion of defective items in the shipment is greater than 15%, the shipment may be returned. You draw a random sample of 10 items. Let X be the number of defective items in the sample.

a. If in fact 15% of the items in the shipment are defective (so that the shipment is good, but just barely), what is P(X ≥ 7)?

b. Based on the answer to part (a), if 15% of the items in the shipment are defective, would 7 defectives in a sample of size 10 be an unusually large number?

c. If you found that 7 of the 10 sample items were defective, would this be convincing evidence that the shipment should be returned? Explain.

d. If in fact 15% of the items in the shipment are defective, what is P(X ≥ 2)?

e. Based on the answer to part (d), if 15% of the items in the shipment are defective, would 2 defectives in a sample of size 10 be an unusually large number?

f. If you found that 2 of the 10 sample items were defective, would this be convincing evidence that the shipment should be returned? Explain.

Reference no: EM131009268

Questions Cloud

Would this be convincing evidence that the claim is false : Based on the answer to part (a), if 80% of the policyholders have smoke detectors, would one policyholder with a smoke detector in a sample of size 8 be an unusually small number?
Problem regarding the familiar stocks : These data give monthly returns for stocks of three familiar companies: Disney, Exxon, and McDonald's from January 1990 through December 2005.
What is the marginal average cost function : Find the average cost function C associated with the following total cost function C. a) C(x) = 0.000008x3 - 0.1x2 + 110x + 59000. What is the marginal average cost function C'?
How are inequalities (math problems) applied in real life : How are inequalities (math problems) applied in real life? What are some examples?
Would this be convincing evidence : A certain large shipment comes with a guarantee that it contains no more than 15% defective items. If the proportion of defective items in the shipment is greater than 15%, the shipment may be returned. You draw a random sample of 10 items. Let X ..
Using the effective interest rate method to amortize bond : Using the effective interest rate method to amortize bond discount will Cause the carrying value of the bond to decrease as it approaches the maturity date.
Problem regarding the tech stocks : These data give the monthly returns on stocks in three technology companies: Dell, IBM, and Microsoft. For each month from January 1990 through the end of 2005 (192 months), the data give the return earned by owning a share of stock in each compan..
A hand of 5 cards is dealt from a standard deck of cards : A hand  of 5 cards is dealt from a standard deck of cards. The number of ways that the hand could be made up of 2 kings, 2 queens, and 1 ace is?
The record height of a man to date is 8 feet : The record height of a man to date is 8 feet 11 inches (107 inches). If all men had identical body types, their weights would wary directly as the cube of their heights. Assume that all men do have identical body types. If a man who is 5 feet 10 inch..

Reviews

Write a Review

Microeconomics Questions & Answers

  How do banks prevent panics from occurring

Does the fact that your bank keeps only a fraction of your account balance in reserve make you uncomfortable Why don't people rush to the bank and retrieve their money How do banks prevent panics from occurring

  Comparative advantage for mexico

During the debate over NAFTA, opponents argue that given the relative size of the two economies, the income gains resulting from the agreement would be smaller for the United States than for Mexico.

  Explore the business of farmer ted

Explore the business of Farmer Ted.

  What are the major markets and economic decision makers

What are the major markets and economic decision makers

  Difference between short run and long run

Describe the difference between short run and long run as they are used in economics. Differentiate between Economics of scale and Diseconomies of scale.

  How to increase returns of bank

Want the duration of its assets to be greater than the duration of its liabilities - a positive duration gap.Want the duration of its assets to be greater than the duration of its liabilities - a negative duration gap.

  Locate a news article about an issue that has been

locate a news article about an issue that has been addressed through e.g. poverty pollution etc. in order to conduct a

  The total of the amounts invested in equipment

The total of the amounts invested in equipment

  Compute total expected utility from each restaurant option

patricia is researching venues for a restaurant business. she is evaluating three major attributes that she considers

  Maximum price investors

Atlantis will lose its patent protection, and analysts expect economic profit to be zero after five years and which is also the maximum price investors would be willing to pay for Atlantis Company.

  Lowering the interest rate to stimulate the economies

Explain why the European Central Bank cannot selectively change interest rates in any of the 16 EU countries that have adopted the euro—for example, lowering the interest rate to stimulate the economies of Greece, Ireland, or Spain, while maintaining..

  Computation process for optimal output

Allied company machines produces the output that it sells in the highly competitive market at the price of $100 per unit. Its inputs include two machines (which cost the firm $50 each) and workers

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd