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An electronics corporation buys parts from suppliers all over the country. One part is currently being purchased from a supplier in the valley under a contract that calls for at most 5% of the parts to be defective. When a shipment arrives, the corporation randomly samples 10 parts. If it finds 2 or fewer defective parts in the sample, it keeps the shipment; otherwise, it returns the entire shipment to the supplier. Assuming that the conditions for a binomial distribution are satisfied, what is the probability that the sample will lead the corporation to reject the shipment if the defect rate is actually 5%?
What formula do I use and how do I solve this?
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