You are married and you and your spouse have two children, ages 7 and 5. You both work and your combined income is $42,200. Since you work in different directions, you really need two cars, but you never want to make more than one car payment at a time. Your children's school does provide after school childcare at a rate of $2 per hour per child and you use about 2.5 hours each day. Summer childcare is an additional expense so you try to save for it during the school year so it does not hit you so hard when summer comes. One of your goals is that your children attend college and so saving for this is a priority.

This exercise illustrates that poor quality can affect schedules and costs. a manufacturing process has 130 customer orders to fill. each order requires one component part that is purchased from a supplier. however, typically, 3% of the components are identified as defective, and the components can be assumed to be independent. (a) if the manufacturer stocks 130 components, what is the probability that the 130 orders can be filled without reordering components? (b) if the manufacturer stocks 132 components, what is the probability that the 130 orders can be filled without reordering components? (c) if the manufacturer stocks 135 components, what is the probability that the 130 orders can be filled without reordering components?