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Answer to Question #103523 in Statistics and Probability for robby
Question #103523
QUESTION 1
A certain large manufacturing facility produces 20,000 parts each week. The manager of the facility estimates that about 1% of the parts they make are defective. What is the variance for the number of defective parts made each week?
A certain large manufacturing facility produces 20,000 parts each week. The manager of the facility estimates that about 1% of the parts they make are defective. What is the variance for the number of defective parts made each week?
Expert's answer
This is a case of binomial distribution with n=20000, p=0.01,q=1-p, 1-0.01=0.99
Variance=npq
=20000*0.01*0.99
=198
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