Answer to Question #46754 in Statistics and Probability for Rajashri

Question

(i) Each computer chip made in a certain plant will, independently, be defective with probability 0.25. If a sample of 1,000 chips is tested, what is the approximate probability that fewer than 200 chips will be defective?
(ii) A manufacturer of computer terminals claims that its product will last at least for 500 hours without needing repairs. Soft-i-Tech is considering buying many computer terminals. But, it wants to ensure that the claim made by the manufacturer is reasonably true.
Soft-i-Tech’s quality control managers examine the records of the manufacturer and find that a sample of 100 terminals had the average time before first breakdown occurred was 48 hours with a sample standard deviation of 25 hours.
Use this scenario that as you decrease α, say from 0.5 to 0.1 β(49) increases. What is the conclusion from this?