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- Suppose there is a process which produces identical computer
chips and it is your job to determine the reliability of the process.
You assume that the process produces a bad chip with probability .
- Suppose you know that is . What is the probability
that in a selected 10 chips, no bad chips will be found?
- Suppose you test 10 chips and 5 are found to be bad. What
is your estimate of ? How much would you expect the actual value
of to vary from your estimate? What if you had tested 100 chips
and found 50 to be bad?
- # Suppose you test 10 chips and none are found to be bad. What
can you conclude about ? In particular, how big can so that
this result is within a 95% interval?

*Jon Shapiro*

*1999-09-23*