Homework Answers
1.
RTY = IPY1 x IPY2 x IPY3 = 0.99 x 0.98 x 0.96 = 0.931392
So, DPMO = (1 - 0.931392) x 106 = 68,608
2.
RTY = 0.93
DPMO = (1 - 0.93) x 106 = 70,000
3.
More information is required such as confidence level, power of test.
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