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You are conducting quality control for a company that manufactures LED displays. The factory you are assessing is supposed to have a manufacturing defect rate of 1 in 100 LED displays.
(a) What is the statistic that you will use to estimate the defect rate for this factory? How do you compute it usingZ1, Z2,..., Z1500?
(c) What is the chance that your randomly drawn sample is such that your sample statistic from (a)is lower than 0.015?
(d) The factory passes the quality control assessment if the sample of 1500 allows you to construct an asymmetric 95% confidence interval that does not contain 0.02. Say your sample of 1500 displays contains 24 defective displays. Does the factory pass?
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