A process is known to produce 5% nonconforming items. A sample of 40 items is selected from the process.
(a) What is the distribution of the nonconforming items in the sample?
(b) Find the probability of obtaining no more than 3 nonconforming items in the sample.
(c) Using the Poisson distribution as an approximation to the binomial, calculate the probability of the event in part (b).
(d) Compare the answers to parts (b) and (c). What are your observations?