Please show all work and explanation to Receive FULL CREDIT

Please show all work and explanation to Receive FULL CREDIT!!!

You 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

This is poisson distrubution with lambda = 0.1

P( all to be replaced) = 1 - P( none to be replaced) = 1 - e^(-lambda) = 1 - e^(-0.1) = 0.09516 = 9.516%