To avoid being stuck with a shipment of defective HDTV sets, a large retailer te

Question

To avoid being stuck with a shipment of defective HDTV sets, a large retailer tests a random sample of three televisions for defects before purchasing the entire shipment. If any of the three HDTV sets are defective, the entire shipment is rejected. If a manufacturer of HDTV sets has a 1.2% defect rate, what is the probability that a shipment of its HDTV sets will be rejected by this retailer? Do not round intermediate calculations. Enter your answer as a decimal rounded to three places. Probability

Explanation / Answer

The shipment will be rejected if any one of the hdtv sets is defective. The probability of any set being defective is 1.2%. So the probability of the set not being defective is 98.8%.

The probability of the shipment being rejected= 1-probability of shipment not being rejected (ie 1- probability that all are working) =

1- .988*.988*.988 (Since each of the TV sets is independent of the other) = 0.036 ( rounded to three decimals) or 3.6% is the required probability of rejection.

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