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A laptop manufacturing company has implemented a 2-step process to test the quality of each production batch. In the first step, a technician randomly selects 15 laptops from the batch and determines whether they meet specifications. The batch is considered acceptable provided no more than 1 laptop fails to meet specifications. Otherwise, the entire batch has to be tested in the second step. Historical data shows that 95% of the laptops produced adhere to specifications.
-Can we use a binomial distribution to model this process?
-What is the probability that the entire batch unnecessarily has to be tested if, in fact, 95% of its laptops conform to specifications? (Hint: Use Excel's =BINOMDIST() function to find the probability)
-What is the probability that the batch is incorrectly accepted if only 75% of its laptops actually conform to specifications?
-What situations in your organization might this type of analysis apply to? Explain.
State the null and alternative hypotheses for this test, the test statistic and determine if the results significant at the 5% level.
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