As the situation of Exercise 2.69 might suggest,

Chapter 3, Problem 2.71

(choose chapter or problem)

As the situation of Exercise 2.69 might suggest, statistical procedures are often used for control of quality (i.e., industrial quality control). At times, the weight of a product is an important variable to control. Specications are given for the weight of a certain packaged product, and a package is rejected if it is either too light or too heavy. Historical data suggest that 0.95 is the probability that the product meets weight specications whereas 0.002 is the probability that the product is too light. For each single packaged product, the manufacturer invests $20.00 in production and the purchase price for the consumer is $25.00. (a) What is the probability that a package chosen randomly from the production line is too heavy? (b) For each 10,000 packages sold, what prot is received by the manufacturer if all packages meet weight specication? (c) Assuming that all defective packages are rejected and rendered worthless, how much is the prot reduced on 10,000 packages due to failure to meet weight specication?