Exercise 7. A warehouse contains 500 circuit boards. The manufacturer of these circuit boards claims that the defect rate is only 1 in 1000. (a) Suppose that of the 500, two (2) were found to be defective. Compute the chances of observing 2 or more defectives in a lot of 500 from this manufacture, under the assumption that the manufacturer's "1 in 1000" claim is correct. (b) Consider the probability you computed in part (a). Is there evidence that the manufacturer's claim is false? Explain.

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