A manufacturing company implemented a new production process to reduce defective fuses. From the old process, it was computed that at least 1 defect costs the company an average of ₱6,500,000.00 per production run. After implementing the new process, suppose a large lot contains 10% defective fuses and four fuses are randomly sampled from the lot. a Find the probability that at least one fuse in the sample of four is defective.   b (Continuing from result in item a) in one production run of 500 eighty-unit lots, how much would be the loss if the cost to manufacture one unit is ₱ 335.75?   c How much is the difference from the old process? Did the new process effectively reduce the company’s losses

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
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A manufacturing company implemented a new production process to reduce defective fuses. From the old process, it was computed that at least 1 defect costs the company an average of ₱6,500,000.00 per production run. After implementing the new process, suppose a large lot contains 10% defective fuses and four fuses are randomly sampled from the lot.

a Find the probability that at least one fuse in the sample of four is defective.

 

b (Continuing from result in item a) in one production run of 500 eighty-unit lots, how much would be the loss if the cost to manufacture one unit is ₱ 335.75?

 

c How much is the difference from the old process? Did the new process effectively reduce the company’s losses?

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