A factory produces ballpoint pens. On average \(6\%\) of the pens are faulty. The pens are packed in boxes of \(100\) for sale to retail outlets. It should be assumed that the number of faulty pens in a box of \(100\) pens follows a binomial distribution.
For quality control purposes a random sample of \(10\) pens from each box is tested. If \(2\) or fewer faulty pens are found in the sample of \(10\), the box is accepted for sale. Otherwise the box is rejected.
An alternative testing procedure is trialled in which a random sample of 5 pens is initially taken from a box and tested.
(i) Every set of \(10\) pens from a box of \(100\) has an equal chance of selection.
(ii) With \(X\sim\mathrm{Bin}(10,0.06)\), \(P(\text{accepted})=P(X\le2)=0.981\).
(iii) The rejection probability is \(q=1-0.9811621635=0.0188378365\). For \(Y\sim\mathrm{Bin}(75,q)\), more than \(5\%\) means at least \(4\) rejections, so \(P(Y\ge4)=0.0535\).
(iv) Let \(X_1,X_2\sim\mathrm{Bin}(5,0.06)\) for the two batches. Acceptance has probability \(P(X_1=0)+P(X_1=1)P(X_2\le1)+P(X_1=2)P(X_2=0)=0.983\).
(v) The alternative procedure often needs only \(5\) tests, saving testing time and cost while maintaining a similar acceptance probability.
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