2. Textbook pg. 74 documents Demings Red Bead Experiment. Read the experiment carefully (not the funnel experiment), then, discuss the statistical intuitions as well as the managerial implications of the experiments. Statistical intuitions: Hint before you proceed: In this case, because the population information is known to us (there is only 4,000 wooden beads and we know the characteristics in advance). But both workers and managers do not know this information. What they are doing each day is similar to drawing sample from the population. 1) What is the number of red beads and white beads, respectively? Then, what is the proportion of the red beads? Why did he not use a random scoop but a specially designed paddle with 50 holes as the instrument? Since you know the proportion of red beads in advance, approximately, can you guess what is the proportion of red beads in each scoop? 2) When managers are claiming that the number of beads should be less than certain number, can you help workers to verify the claim? Assuming that managers are saying the red beads should not be greater than 5 count in each scoop (aka. Null hypothesis is P <= 0.10). Test the claim using a hypothesis test of population proportion and show the steps. (Hint: we did a similar type of problem in the previous assignment. The Excel function is =NORM.DIST(sample proportion, hypothesized proportion, standard error, true) Managerial implications: What does the experiment say about two types of the variations? What managers can learn from the experiment in designing an organization that is dedicated in quality excellence? Please discuss.