What is the probability of returning a shipment


A production process manufactures alternators for outboard engines used in recreational boating. On average, 1% of the alternators will not perform up to the required standards when tested at the engine assembly plant. When a large shipment of alternators is received at the plant, 100 are tested and if more than two are nonconforming, the shipment is returned to the alternator manufacturer. What is the probability of returning a shipment?

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Basic Statistics: What is the probability of returning a shipment
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