A distribution center processes \(15{,}000\) packages per day. Of these, \(10{,}800\) are domestic shipments. Overall, \(5\%\) of all packages are damaged, and exactly \(126\) damaged packages are international.
a) Complete the two-way table.
<table border="1"> <tr><td></td><td>Damaged</td><td>Undamaged</td><td>Total</td></tr> <tr><td>Domestic</td><td></td><td></td><td>\(10{,}800\)</td></tr> <tr><td>International</td><td>\(126\)</td><td></td><td></td></tr> <tr><td>Total</td><td></td><td></td><td>\(15{,}000\)</td></tr> </table>
b) Find the damage rate among domestic packages and the damage rate among international packages. Report each to the nearest tenth of a percent.
c) Which shipment group has the higher conditional damage rate?
Hints
- Convert the overall damage percentage into a total damaged count before completing the table.
- A conditional damage rate uses the total for that shipment group as its denominator.
- Compare rates rather than raw damaged-package counts.
Solution
1. The international total is \(15{,}000-10{,}800=4200\).
2. The total damaged count is \(0.05\cdot15{,}000=750\), so the damaged domestic count is \(750-126=624\).
3. Undamaged domestic packages: \(10{,}800-624=10{,}176\). Undamaged international packages: \(4200-126=4074\). The undamaged total is \(15{,}000-750=14{,}250\).
4. The domestic damage rate is \(P(\text{damaged}\mid\text{domestic})=\frac{624}{10800}\approx0.0578\), or \(5.8\%\).
5. The international damage rate is \(P(\text{damaged}\mid\text{international})=\frac{126}{4200}=0.030\), or \(3.0\%\).
6. The domestic shipment group has the higher conditional damage rate.
Answer
a) <table border="1"> <tr><td></td><td>Damaged</td><td>Undamaged</td><td>Total</td></tr> <tr><td>Domestic</td><td>\(624\)</td><td>\(10{,}176\)</td><td>\(10{,}800\)</td></tr> <tr><td>International</td><td>\(126\)</td><td>\(4074\)</td><td>\(4200\)</td></tr> <tr><td>Total</td><td>\(750\)</td><td>\(14{,}250\)</td><td>\(15{,}000\)</td></tr> </table>
b) Domestic: \(5.8\%\). International: \(3.0\%\).
c) Domestic packages have the higher conditional damage rate.