A company produces Widgets of which 12 happen to be out of t

A company produces Widgets of which 1.2% happen to be out of tolerance. Up to 135 Widgets can be produced in one continuous run, but Widgets made in excess of a customer order have no residual value and are thrown away. All Widgets are tested only after a manufacturing run has been complete. The company receives an order for 120 Widgets. What is the chance to fulfil the order by producing exactly 123 Widgets?

Solution

135 are made in 1 run

1.2% are not tolrerated

1.2% of 120 = 1.44

so to be on safer side 122 should be made

but we have to calculate the chance of 123

which will be 123/135 = 0.91

so there is 91% chance that company will fulfill