Suppose Company A produces an electronic product that costs $600 each and sells it in the...

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Suppose Company A produces an electronic product that costs $600 each and sells it in the market for $800, with a total of 10,000 products in this batch. However, if a consumer buys a defective product, he will return it and we must refund him $800, plus a disposal cost of $50, and the defective product must be discarded and cannot be reused. Assume that the factory manufactures the product at a defect rate p. (a) If Company A sells all of the current batch of the product in the market and expects to make a profit of at least $1.8 million, calculate the upper bound on the defect rate p. (b) Let the upper bound of p in part (a) be p0(the value of p0 is about 0.0235). Suppose that before selling the products, Company A takes n = 200 products for testing and finds 5 defective products. Using = 0.05, can we determine that the defect rate p is less than po? (Hint: HO: p = p0 versus H1 : = 0.05p < 0.1mp using = 0.05 Suppose Company A produces an electronic product that costs $600 each and sells it in the market for $800, with a total of 10,000 products in this batch. However, if a consumer buys a defective product, he will return it and we must refund him $800, plus a disposal cost of $50, and the defective product must be discarded and cannot be reused. Assume that the factory manufactures the product at a defect rate p. (a) If Company A sells all of the current batch of the product in the market and expects to make a profit of at least $1.8 million, calculate the upper bound on the defect rate p. (b) Let the upper bound of p in part (a) be p0(the value of p0 is about 0.0235). Suppose that before selling the products, Company A takes n = 200 products for testing and finds 5 defective products. Using = 0.05, can we determine that the defect rate p is less than po? (Hint: HO: p = p0 versus H1 : = 0.05p < 0.1mp using = 0.05