Question: A manufacturing company produces 10,000 plastic mugs per week. This company supplies mugs to another company, which packages the mugs as part of picnic sets. The second company randomly samples 10 mugs sent from the supplier. If two or fewer of the sampled mugs are defectives, the second company accepts the lot. What is the probability that the lot will be accepted if the mug manufacturing company actually is producing mugs that are:

1. 10% defective
2. 20% defective
3. 30% defective
4. 40% defective
5. If the true defective rate is constant at 3%, what is the expected number of mugs in the sample of 10 that are defective?
6. Again assuming a 3% defective rate, what is the standard deviation of the number of mugs in the sample of 10 that are defective?
7. If the rate of defectives is constant at 3%, what is the probability that no defective mugs . will be in the sample of 10 mugs.

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