Hi Amanda,
This is a binomial probability problem. We have two potential outcomes--defective battery or not. Formula for that is:
P=C(n,x)pxqn-x
Breaking this down:
C implies combination--order in which you select the batteries does not matter
n=sample size
x=desired number of "successes" i.e. defective batteries
p=probability of success
q=1-p=probability of failure
Now, we have four separate calculations to do because the question asked "At most, 3 defective batteries." That means we have to compute probabilities of 3,2,1 and 0 defectives and then add them up.
I'll start from the top:
P=C(n,x)pxqn-x
n=42
x=3
p=0.02
q=1-p=0.98
So:
P=C(42,3)0.023*0.9839
Now, the combination C(42,3) has its own formula:
C(n,x)=n!/x!(n-x)!
where:
n=sample size
x=desired number of successes
!=factorial=n*(n-1)*(n-2)...i.e. 3*2*1
So, substituting and calculating:
C(42,3)=42!/(3!*39!)=11480
Now, back to the original problem:
P=C(42,3)0.023*0.9839
C(42,3)=11480
I will use P3 so you know which x I am calculating. I'll use P2, P1, P0 for the rest. Thus:
P3=11480*0.023*0.9839
P3=0.042
Keep this probability in mind, as we will need it at the end.
Now, we need P2.
P2=C(42,2)*0.022*0.9840
We need to compute C(42,2) with the factorial formula:
C(42,2)=42!/(2!*40!)=861
So:
P2=861*0.022*0.9840
P2=0.153
Let's get P1
P1=C(42,1)*0.021*0.9841
Factorial formula time:
C(42,1)=42!/(1!*41!)=42
Substituting:
P1=42*0.021*0.9841
P1=0.367
Now, let's get P0:
P0=C(42,0)*0.020*0.9842
Now, we are going to do the factorial formula again, but note that:
0!=1, by definition
Also, any number divided by itself is 1, so:
C(42,0)=42!/(42!*0!)=1
Substituting:
P0=1*0.020*0.9842
Additionally
a0=1, where a is any real number, so:
P0=1*1*0.9842
P0=0.9842
P0=0.428
Now, we can add up the probabilities to get the probability that the whole shipment will be accepted. This is P(X<=3)
P(X<=3)=0.990
Therefore, almost all shipments (99%) will be accepted; only 1% will be rejected. I hope this helps.