MGT 3200 Chapter : MGMT 3200 Chapter 12 Summer 13
Document Summary
[1] parts on an assembly line are batched onto carts at the end of an operation. Pr(at least 1 defect) = 1 h(0; n=25, n=5, s=3)==1 (30)(25 35 ) (255) Reversing the problem makes it easier to solve: how big should n be such that the probability of accepting the cart (meaning 0 defects in sample) is no more than 1-. 95 or 0. 05 (5%)? h(0;25,?,3) <= 0. 05. From 1st problem, can see n=5 gave us 49. 6%, so needs to be a good bit larger to get down to 5% or lower. Trial and error - condition above first met for n=16 (pr. [2] a petroleum basin as a one in four chance that an exploratory well will be producing (as opposed to dry). It costs million on average to drill each exploratory well. A producing well returns on average million over its life, while on average nothing is returned if "dry".
