Each Week American Stores Receives a Shipment from a Supplier

True/False

Each week American Stores receives a shipment from a supplier. The contract specifies that the maximum allowable percent defective is 5 percent. When the shipment arrives, a sample of 20 parts is randomly selected. If 2 or more of the sampled parts are defective, the shipment is rejected and returned to the supplier. Assume that a shipment arrives that actually has 4 percent defective parts and the distribution of defective parts is described by a binomial distribution. The probability that the shipment is rejected is approximately 0.19.