As a purchasing agent, you are responsible for selecting sources of supply for manufactured components to use in your firm’s production process. The salesman for a certain supplier has indicated that they can supply an electronic sub-assembly that has a defect rate of 1.1% – well below your current supplier’s defect rate. You accept 100 sub-assemblies for evaluation and find that there were four defects.
a. Using the Poisson \approx imation to the binomial, how likely is it to get four or less defects out of 100?
b. Using the Poisson \approx imation to the binomial, how likely is it to get exactly four defects out of 100?