How to calculate confidence interval for predicted failure rate
This is a very basic statistics question, which also leads in to a "how do I do it in JMP" question. Imagine I have a component with a predicted defect rate of 0.5%. I build 500 systems which each use N of these components. The components are chosen at random and independently of each other. I can test for the defect at system level. To my simple mind, if N=2 the probability of a system being good...