Given that the bags are a random sample this corresponds to a binomial distribution with
\(n = 20\) and \(p = 0.01\)
> 1-pbinom(1,20,0.01)
[1] 0.01685934
The probability of such an extreme event, two or more underweight when the expected number under weight is \(0.2\),
is rather small. Although this doesn't prove that the proportion underweight exceeds \(0.01\), it does provide
convincing evidence that the proportion exceeds \(0/01\).
The proportion outside the internal specification would increase from \(0.003\) to \(0.038\).
[Nearly all outside the internal spec would have too high a capacitance.
The average cost of a within spec piston is \(3.80\)
[It would be better to avoid manufacturing scrap and to try to reduce the standard deviation
by improving work procedures.]