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26 Bridies' Bearing Works manufactures bearing shafts whose diameters are nor-mally distributed with parameters µ = 1, o = .002. The buyer's specificationsrequire these diameters to be 1.000 +.003 cm.

What fraction of the manu-facturer's shafts are likely to be rejected? If the manufacturer improves herquality control, she can reduce the value of o. What value of o will ensurethat no more than 1 percent of her shafts are likely to be rejected?

Fig: 1