Question

You schedule production of communications chips. After the chips are produced, they go to the QC department, where each chip must pass a 2-hour test. Over the past year, 5.0% of the chips have failed this test. You wish to choose a batch size that will yield as close as possible to 1,000 good chips, on average. Which of the following is the best batch size?

A.1,050
B.1,053
C.1,055
D.1,059
E.1,060

Answer 1

Answer: b) 1,053

Explanation:

To determine the best batch size that will yield as close as possible to 1,000 good chips, we need to calculate the expected number of good chips in each batch.

Given that 5.0% of the chips fail the test, it means that 95.0% of the chips pass the test.

Let's calculate the expected number of good chips in each batch for the given options:

A. 1,050 chips: 1,050 x 0.95 = 997.5

B. 1,053 chips: 1,053 x 0.95 = 1,000.35

C. 1,055 chips: 1,055 x 0.95 = 1,002.25

D. 1,059 chips: 1,059 x 0.95 = 1,006.05

E. 1,060 chips: 1,060 x 0.95 = 1,007

From the options provided, the best batch size that yields as close as possible to 1,000 good chips on average is option B, 1,053 chips, with an expected number of 1,000.35 good chips.