An engineer claims that a process should produce no more tha

An engineer claims that a process should produce no more than 1 in 1000 defective items. We randomly select 100 of these items and find three defects. Is this consistent with the engineer\'s claim? Explain by using the Poisson approximation to the binomial.

Solution

The probability is: p = 3/100 = 0.03

Then q = 1 - p = 1 - 0.03 = 0.97

N = 1000

Using Poisson approximation to the binomial we can say that the claim is consistent.