A machine producing hair pins produces 1 defective out of 400 on an average. If 100 hairpins are packed in each box.
In above problem, suppose the manufacturer gives guarantee that there will be less than 3 defectives in a box of 100. What is the probability that a box selected at random will meet the guarantee.
"n=100, p=1\/400=0.0025."
We have a Bernoulli trial - exactly two possible outcomes, "success" (the hairpin is defective) and "failure" (the hairpin is non-defective) and the probability of success is the same every time the experiment is conducted (a hairpin is produced).
The probability of each result
"P(X=k)=\\begin{pmatrix}n\\\\k\\end{pmatrix}\\cdot p^k\\cdot q^{n-k}."
For those situations in which "n" is large and "p" is very small, the Poisson distribution can be used to approximate the binomial distribution.
We have a Poisson distribution,
"\\lambda=np=100\\cdot0.0025=0.25;\\\\\nP(X=k)=\\cfrac{\\lambda^k\\cdot e^{-\\lambda}}{k!}."
"P(X<3) =\\\\\n=P(X=0)+P(X=1)+P(X=2)=\\\\\n=\\cfrac{0.25^0\\cdot e^{-0.25}}{0!}+\\cfrac{0.25^1\\cdot e^{-0.25}}{1!}+\\cfrac{0.25^2\\cdot e^{-0.25}}{2!}=\\\\\n=0.7788+0.1947+0.0243=0.9978."
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