During a manufacturing process 15 units are randomly selected each day from the production line to check the percent defective. From historical information it is known thatthe probability of a defective unit is 0.05. Any time that two or more defectives are foundin the sample of 15, the process is stopped. This procedure is used to provide a signal incase the probability of a defective has increased. (a) What is the probability that on any given day the production process will be stopped? (Assume 5% defective.) (b) Suppose that the probability of a defective has increased to 0.07. What is the probability that on any given day the production process will not be stopped?

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Estimation

A new framework of data analysis where the new statistical methods are used for interpreting the results and analyzing the data is known as estimation in statistics.