Answer:
a) 95%
b) No, because the sample size is too small.
Explanation:
There are
ways of choosing 3 elements out of 1969 without repetition.
By the rule of product, there are
400*399*388 = 63,520,800
ways of selecting 3 defective CD's
So, the probability of taking 3 defective CD's out of 1969 is
63,520,800/1,270,351,544 = 0.05 (5%)
Hence, the probability of choosing 3 non defective CD's is
0.95 (95%)
And this is the likelihood the entire batch will be accepted.
This result should not indicate that the entire batch consists of good CD's because the sample size is too small.
Determining the sample size depends on several factors which include the margin of error acceptable and the size of the population.
But as a rule of thumb, for a population less than 10,000 a 10% is considered a good size of sample.
So, in this case, a sample should consist of around 190 CD's.