your company makes composite panels that have an average sur

your company makes composite panels that have an average surface defect rate of 0.1/panel. Your warranty policy states you will replace any panel with a surface defect. What percentage of your panels will likely have to be replaced?

Solution

Average surface defect rate = 0.1 / panel

Percentage of panels likely to be replaced = probability * 100 = 0.1 * 100 = 10 %