05 STAT discrete rv IC Q4 Q5

# 05 STAT discrete rv IC Q4 Q5 - Dr. V.R. Bencivenga...

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Dr. V.R. Bencivenga Economics 329 DISCRETE RANDOM VARIABLES INDEX CARD QUESTION #4 Your firm manufactures computers. You are sent a very large shipment of chips by a supplier. You want to accept this shipment only if ten percent or less of the chips are defective, which is the supplier’s claim. Your procedure for deciding whether to accept the shipment is to randomly select a sample of 10 chips, test them, and accept the shipment if there are either zero defectives or one defective among the ten. a. If in fact ten percent of the shipment is defective, what is the probability that you will accept the shipment? b. Suppose you discover three defectives among the ten in your sample. Which is “more likely,” (i) there really are ten percent defectives, and this particular sample of ten is unusual, or (ii) the true proportion of defectives is twenty percent? (SEE BELOW FOR A HINT.) c. Suppose instead that the shipment is small say your company receives a shipment of twenty chips. Your procedure for deciding to accept the shipment is the same

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## This note was uploaded on 02/26/2012 for the course ECONOMICS 329 taught by Professor Bencivenga during the Spring '12 term at University of Texas.

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05 STAT discrete rv IC Q4 Q5 - Dr. V.R. Bencivenga...

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