Gannon University
Department of Mechanical Engineering
Decision Making Under Uncertainty, GENG 623
Problem # 1
XYZ Corporation assembles parts for a local manufacturing firm. They have 45 experienced workers on assembly line. These workers typically assemble parts where only 5% parts have a chance to be defective. Recently the company received large orders and has to hire another 50 people. They decided to form two groups. In the first group they placed 30 experienced workers (5% chance of defective parts) who would do half of the work (50%). The second group further divided into two subgroups. First subgroup has 10 experienced workers and 20 workers with some experience. This subgroup can assemble parts where only 15% parts have a chance to be defective. This group is going to assemble 30% of the parts. The second subgroup has only 5 experienced workers and 30 inexperienced workers. This subgroup is going to assemble the remaining 20% of the parts that have a 40% chance to be defective. What is the probability that 7 out of 30 parts tested and found to be defective, are assembled by first group (all experienced workers). Please submit your spread sheet with values as well as with formulae.