Engineering, 05.09.2021 20:10 anrs14
5. A manufacturing company implemented a new production process to reduce defective fuses.
From the old process, it was computed that at least 1 defect costs the company an average of
$6,500,000.00 per production run. After implementing the new process, suppose a large lot
contains 10% defective fuses and four fuses are randomly sampled from the lot.
a. Find the probability that at least one fuse in the sample of four is defective.
b. (Continuing from result in item a) in one production run of 500 eighty-unit lots, how
much would be the loss if the cost to manufacture one unit is 335.75?
c. How much is the difference from the old process? Did the new process effectively
reduce the company's losses?
Answers: 3
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5. A manufacturing company implemented a new production process to reduce defective fuses.
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