Question: Problem 2. A factory manufacture; widgets. The probability that a widget manufactured at the factory is defective in 3%,. and the occurrence of defects are

Problem 2. A factory manufacture; widgets. The probability that a widget

Problem 2. A factory manufacture; widgets. The probability that a widget manufactured at the factory is defective in 3%,. and the occurrence of defects are independent. Use a Poisson approximation to compute the probability that in a shipment of 4m widgets on more than 3 are defective

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1. Identify your reference point when making a decision based on an element of risk.

3. If there are reasonable alternatives, think about your decisions based on the different reference points and see if there are any contradictions in the decisions.

4. It is only at this point that you can give the problem your full attention in relation to the various ways you have framed the problem.