The Hawkins Company randomly samples 10 items from every large batch before the batch is packaged and shipped. According to the contract specifications, 5 percent of the items shipped can be defective.
If the inspectors find 1 or fewer defects in the sample of 10, they ship the batch without further inspection. If they find 2 or more, the entire batch is inspected. Based on this sampling plan, the probability that a batch that meets the contract requirements will be shipped without further inspection is approximately .9139. Indicate whether the statement is true or false
Question 2
The branch manager for United Savings and Loan in Seaside, Virginia, has worked with her employees in an effort to reduce the waiting time for customers at the bank.
Recently, she and the team concluded that average waiting time is now down to 3.5 minutes with a standard deviation equal to 1.0 minute. However, before making a statement at a managers' meeting, this branch manager wanted to double-check that the process was working as thought. To make this check, she randomly sampled 25 customers and recorded the time they had to wait. She discovered that mean wait time for this sample of customers was 4.2 minutes. Based on the team's claims about waiting time, what is the probability that a sample mean for n = 25 people would be as large or larger than 4.2 minutes?
A) 0.0214
B) 0.0512
C) 0.0231
D) 0.0011
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