VNV company when purchasing 5000 components from a manufacturing plant applies this sampling plan: By randomly picking 8 of such components and then accepting the whole lot only if there are at most 2 defective out of 8. If the manufacturing plant claims that 5% of their production may be defective, what is the probability that the VNV company accepts the whole lot?  If the company accepts the whole batch of 5000, what is the variance of this distribution?

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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.