You have just received an order for 36 Huon pine beer can holders. Huon pine can be difficult to work with, and historically 8% of the holders that you make develop cracks and are unsellable. Consequently, you decide to make 38 in the hope that you will be able to satisfy this order.

 

A. What distribution could be used to model the number of sellable can holders that are produced? Give all relevant parameters.
 

B. What is the probability that you don't produce enough can holders to be able to fulfil the order? Show your working (this could take the form of an Excel formula or an equation).

 

C. You are told that the amount of humidity in the atmosphere affects the probability that a can holder will crack, and that humidity can vary during a production run. Explain whether this impacts the validity of using the model you identified in part (a).

Answer rating: 100% (QA)

A In this scenario you can model the number of sellable can holders produced using the binomial dist... View the full answer