Question: Tata Motors Ltd purchases computer process chips from two suppliers

Tata Motors, Ltd., purchases computer process chips from two suppliers, and the company is concerned about the percentage of defective chips. A review of the records for each supplier indicates that the percentage defectives in consignments of chips follow normal distributions with the means and standard deviations given in the following table. The company is particularly anxious that the percentage of defectives in a consignment not exceed 5% and wants to purchase from the supplier that's more likely to meet that specification. Which supplier should be chosen?

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  • CreatedJuly 07, 2015
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