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64   Chapter 2/Probability




                 Mind-Expanding Exercises

                 2-230.  Suppose documents in a lending organization are  How many kits should be produced each week to maximize
                 selected randomly (without replacement) for review. In a set   the irm’s mean earnings?
                 of 50 documents, suppose that 2 actually contain errors.  2-233.  Assume the following characteristics of the inspec-
                 (a)  What is the minimum sample size such that the probability   tion process in Exercise 2-207. If an operator checks a bolt,
                    exceeds 0.90 that at least 1 document in error is selected?  the probability that an incorrectly torqued bolt is identiied
                 (b) Comment on the effectiveness of sampling inspection to   is 0.95. If a checked bolt is correctly torqued, the operator’s
                    detect errors.                              conclusion is always correct. What is the probability that
                                                                at least one bolt in the sample of four is identiied as being
                 2-231.  Suppose that a lot of washers is large enough that it
                                                                incorrectly torqued?
                 can be assumed that the sampling is done with replacement.
                                                                2-234.  If the events A and B are independent, show that A′
                 Assume that 60% of the washers exceed the target thickness.
                                                                and B′ are independent.
                 (a)  What is the minimum number of washers that need to
                                                                2-235.  Suppose that a table of part counts is generalized
                    be selected so that the probability that none is thicker
                                                                as follows:
                    than the target is less than 0.10?
                 (b) What is the minimum number of washers that need to
                    be selected so that the probability that 1 or more wash-               Conforms
                    ers are thicker than the target is at least 0.90?                    Yes      No
                 2-232.  A biotechnology manufacturing irm can produce   Supplier  1      ka      kb
                 diagnostic test kits at a cost of $20. Each kit for which there   2      a        b
                 is a demand in the week of production can be sold for $100.
                 However, the half-life of components in the kit requires the   where a,  b, and k  are positive integers. Let A  denote the
                 kit to be scrapped if it is not sold in the week of production.   event that a part is from supplier 1, and let B  denote the
                 The cost of scrapping the kit is $5. The weekly demand is   event that a part conforms to speciications. Show that A
                 summarized as follows:                         and B are independent events.
                                                                  This exercise illustrates the result that whenever the rows
                                Weekly Demand                   of a table (with r rows and c columns) are proportional, an
                  Number of units   0     50    100    200      event deined by a row category and an event deined by a
                                                                column category are independent.
                  Probability of
                    demand         0.05   0.4    0.3  0.25






               Important Terms and Concepts


               Addition rule           Equally likely          Permutation             Simpson’s paradox
               Axioms of probability      outcomes             Probability             Total probability rule
               Bayes’ theorem          Event                   Random samples          Tree diagram
               Combination             Independence            Random variables—discrete   Venn diagram
               Conditional probability  Multiplication rule       and continuous       With or without replacement
               Counting                Mutually exclusive events  Sample spaces—discrete and
                  techniques           Outcome                    continuous
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