Answer: Probability that the entire batch will be accepted is 0.658.
Yes, this suggests entire batch of good CDs as it is the only condition to get accepted.
Explanation:
Since we have given that
Number of CDs = 507
Number of defective = 65
Since the entire batch will be accepted.
So, the probability of success is p =

and the probability of failure is q =

Number of CDs selected = 3
So, Probability that the entire batch will be accepted is given by

Hence, Probability that the entire batch will be accepted is 0.658.
Yes, this suggests entire batch of good CDs as it is the only condition to get accepted.