A manufacturer of an electrical component claims to have made changes in their manufacturing process to improve the quality of the component. Previously the component had a nonconforming rate of 10%. The supplier would like to provide you with 8 units for destructive testing to demonstrate that the nonconforming rate is now below 10%.
(a) If the nonconforming rate has dropped to say 8%, what is the proba bility that you would see no non-conforming items in a sample of size 8?
(b) If the non-conforming rate has increased to say 12% what is the prob ability that you would see no non-conforming items in a sample of size 8?
(c) How large of a sample would you need to estimate the non-conforming rate to within 5% with 95% confidence?