electronics has developed a smart phone that does things that no other phone
yet released into the market-place will do. The marketing department is
planning to demonstrate this new phone to a group of potential customers, but is
worried about some initial technical problems which have resulted in 0.1% of all
phones malfunctioning. The marketing executive is planning on randomly selecting
100 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 0.001.
Assuming the marketing executive randomly selects 100 phones for use in the
(a) What is the probability
that no phones will malfunction? [If you use any probability distribution/s, you
are required justify the requirements for particular distributions are
(b) What is the probability
that at most one phone will malfunction?
(c) The executive has decided
that unless the probability of there being no malfunctions is greater than 90%,
he will cancel the demonstration. Should he cancel the demonstration or not?
Explain your answer.