Samples of $20$ parts from a metal punching process are selected every hour. Typically, $1\%$ of the parts require rework. Let $X$ denote the number of parts in the sample of $20$ that require rework. A process problem is suspected if $X$ exceeds its mean by more than $3$ standard deviations.
(a) If the percentage of parts that require rework remains at $1\%$, what is the probability that $X$ exceeds its mean by more than $3$ standard deviations?
What I did was $(np(1-p))^{0.5}$, and I got $0.445$ for the standard deviation. However, the way the question was worded confused me. The solution proceeds to calculate the upper bound and finds the answer as $0.0169$. I do not understand how I can use $0.445$ to get $0.0169$. If someone could help, I would be really glad.
Solution is located here: https://www.slader.com/textbook/9781118539712-applied-statistics-and-probability-for-engineers-6th-edition/86/exercises/108/
You got $\sigma = 0.445$. You also need $\mu = 0.2$. Then the probability that $X$ exceeds its mean by more than 3 standard deviations is $P(X> 0.2 + 3(0.445))$.
Since $X$ can only be integer, that is the same as $P(X \geq 2)$, which is the same as $1-P(X=0)-P(X=1)$.
$P(X=0) = (0.99)^{20}$ and $P(X=1) =20 (0.99)^{19} (0.01)$