Brakes Shop Inc is a franchise that specializes in repairing

Brakes Shop, Inc., is a franchise that specializes in repairing brake systems of automobiles. The quality control department of the company has decided that if the sample contains no defective parts, the entire lot will be accepted. If the defect rate is .05, what would be the consumer’s risk if the sample size is 10?

Select one:

a. .5987

b. .4013

c. .2358

d. Cannot calculate with the information provided

Solution

The sample will be accepted iff the number of defective items in the lot is 0.

Here let X be the random variable denoting the number of defective items in the lot

Hence by question X~Bin(10,0.05)

Now, P(X=0)=Probability that the lot will be accepted= Consumer\'s Risk=0.5987

a. is the correct option