MHB Binomial Distribution for Manufacturer's Claim on Product Durability

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The discussion centers on determining the appropriate statistical distribution for evaluating a manufacturer's claim that at most 5% of products will require service before 1000 hours of operation. A sample of 20 products revealed that 3 needed service, leading to confusion about whether to use a binomial or negative binomial distribution. It is clarified that a binomial distribution is suitable, specifically focusing on the probability of 3 or more products requiring service (P(X≥3)). The assumption is that the 5% failure rate per product provides the manufacturer with the most favorable interpretation of their claim. Understanding this distinction is crucial for accurate analysis of the manufacturer's assertion.
dfraser
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Hi,

I'm struggling to know what distribution this question requires, and what should be signalling the distribution type:

A manufacturer claims at most 5% of his product will sustain fewer than 1000hrs of operation before needing service. Twenty products are selected at random from the production line and tested. It was found that 3 of them required service before 1000hrs of operation. Comment on the manufacturers claim.

The solution for the probability of 3 requiring service before the 1000hrs is (according to my text) 0.0754.

I think I might be getting confused by "at most 5% of his product will sustain fewer than 1000hrs".

For a binomial I'd have:
$${ 20\choose17 }{.95}^{17}{.05}^{3} = .05958$$

For a negative binomial I'd have:
$${ 19\choose2 }{.95}^{17}{.05}^{3} = .00893$$

This isn't poisson, geometric, hypergeometric, or multinomial, so what is it? Or can someone give me a hint about where I'm going wrong?
 
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dfraser said:
Hi,

I'm struggling to know what distribution this question requires, and what should be signalling the distribution type:

A manufacturer claims at most 5% of his product will sustain fewer than 1000hrs of operation before needing service. Twenty products are selected at random from the production line and tested. It was found that 3 of them required service before 1000hrs of operation. Comment on the manufacturers claim.

The solution for the probability of 3 requiring service before the 1000hrs is (according to my text) 0.0754.

I think I might be getting confused by "at most 5% of his product will sustain fewer than 1000hrs".

For a binomial I'd have:
$${ 20\choose17 }{.95}^{17}{.05}^{3} = .05958$$

For a negative binomial I'd have:
$${ 19\choose2 }{.95}^{17}{.05}^{3} = .00893$$

This isn't poisson, geometric, hypergeometric, or multinomial, so what is it? Or can someone give me a hint about where I'm going wrong?

Hi dfraser,

It's a binomial distribution as you surmised.
It's just that they ask for $P(X\ge 3)$ instead of $P(X=3)$, where $X$ is the number that requires service before 1000 hrs.
And indeed we assume that the probability is 5% per product, since this gives the manufacturer the most leeway.
 
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