GMAT Focus EditionQuantitative ReasoningHard

A production manager is analyzing the defect rate of a manufacturing process. In a sample of 200 items, 10 were found to be defective. If the process is considered to be in control when the defect rate is below 4%, what is the probability that a random sample of 50 items from this process would contain exactly 2 defective items, assuming the observed defect rate holds true?

  1. A0.224
  2. B0.205
  3. C0.182
  4. D0.246
Show answer & explanation

Correct answer: C. 0.182

First, calculate the observed defect rate: 10/200 = 0.05 or 5%. Since this is above the 4% control limit, we use the observed rate for the probability calculation. This is a binomial probability problem with n=50, k=2, and p=0.05. The formula is P(X=k) = C(n, k) * p^k * (1-p)^(n-k).

Why the other options are wrong

  • A. This could be a result of using a different k value or a miscalculation in the binomial coefficient.
  • B. This might result from a slight miscalculation in combinations or powers, or using an incorrect probability for p.
  • D. This would likely result from a significant miscalculation in the binomial probability formula.

Binomial Probability

Binomial probability calculates the likelihood of a specific number of successes in a fixed number of independent trials, given a constant probability of success for each trial.

  • Fixed number of trials (n).
  • Each trial has only two possible outcomes (success/failure).
  • Probability of success (p) is constant for each trial.
  • Trials are independent.

Memory trick: Count the chances for exact hits in a set number of tries.

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