To determine the probability using a normal approximation we need to determine the z-score of the sample. To do that we use the following formula:
Where:
First, we need to calculate the mean. To do that we use the following formula:
Where
To determine the decimal form of the failure rate we divide the percentage by 100, like this:
The sample size, in this case, is 295. Substituting we get:
Now, we need to calculate the standard deviation. We do this using the following formula:
Substituting the values we get:
Solving the operations:
Since we are approximating to binomial we need to use a continuity correction factor of 0.5 to the number of chips we are considering. Let "x" be the number of chips, we have that:
Now we substitute in the formula for the z-score:
Now, we solve the operations:
Therefore, in the binomial distribution, we need to determine the area for z = -0.073. Therefore, the probability is:
Therefore, the probability is 0.472