A company when purchasing 5000 components from a manufacturing plant applies this sampling plan: By randomly picking 5 of such components and then accepting the whole lot only if there are less than 3 defective out of 5.
If the plant claims that 5% of their production may be defective, what is the probability that the company accepts the whole lot?
If the company accepts the whole batch of 5000, what are the expected number of defective?
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