Statistics & DataChallengeSampling Distributions
Sampling Distributions · Challenge problem
A buyer inspects a random sample of items from each large lot and rejects the lot if the sample proportion of defectives exceeds a cutoff . The cutoff is chosen so that a good lot, with defective, is rejected with probability (use the normal model for with ). What is the probability that a bad lot, with defective, is ACCEPTED? Use the normal model again and give your answer to four decimal places.