York Steel Corporation produces a special bearing that must meet
York Steel Corporation produces a special bearing that must meet rigid specifications. When the production process is running properly, 10% of the bearings fail to meet the required specifications. Sometimes problems develop with the production process that cause the rejection rate to exceed 10%. To guard against this higher rejection rate, samples of 15 bearings are taken periodically and carefully inspected. If more than 2 bearings in a sample of 15 fail to meet the required specifications, production is suspended for necessary adjustments.
a. If the true rate of rejection is 10% (that is, the production process is working properly), what is the probability that the production will be suspended based on a sample of 15 bearings?
b. What assumptions did you make in part a?
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