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May 7th, 2013, 05:06 AM   #1
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Probability and Statistics

Hello,

Can anyone help me with the followig problem as im new to Probability.

MagTek” electronics has developed a smart phone that does things that no other
phone yetreleased into the market-place will do. The marketing department is planning
to demonstratethis new phone to a group of potential customers, but is worried about
some initial technicalproblems which have resulted in 0.2% of all phones malfunctioning.
The marketing executive is planning on randomly selecting 60 phones for use in the
demonstration but is worried because it is very important that every single one functions
OK during the demonstration. The executive believes that whether or not any one phone
malfunctions is independent of whether or not any other phone malfunctions and is
convinced that the probability that any one phone will malfunction is definitely 0.002.
Assuming the marketing executive randomly selects 60 phones for use in the demonstration:

(a) What is the probability that no phones will malfunction? [If you use anyprobability
distribution/s, you are required justify the requirements forparticular distributions are
satisfied]

(b) What is the probability that at most one phone will malfunction?

(c) The executive has decided that unless the probability of there being nomalfunctions is
greater than 90%, he will cancel the demonstration. Shouldhe cancel the demonstration or
not? Explain your answer.
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