This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Commission, Honeywell agreed to recall 770,000 potentially defective smoke detectors. The Commission suggested that about 40% of the Honeywell detectors were defective. However, Honeywell found only four defectives in a random sample of 2000 detectors and claimed that the recall was not justified. What is the probability of finding at most 4 defective detectors in a random sample of 2000 if, in fact, 40% of all detectors are defective? 11) Consider the following game: A cup is filled with 100 pennies. The cup is shaken, and the pennies are poured onto a table. If at least 60 of the pennies are Heads, you win $20. Otherwise, you lose $1. Use the normal approximation to the binomial, together with expected value, to decide if this is a good game to play....
View Full Document
- Spring '08