the requirement is that the probability of error is no great than 0.001. there are 5000 trials, and there will only two possible results: error and no error. how many failures should the equipment manufacture be allowed in order that the probability of passing the test be 0.98?
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This sounds like a fairly straightforward Binomial distribution (unless I am mis-understanding the question). If you have the Statistics Toolbox, search the Matlab help for "Binomial distribution" and you will find several functions related to this distribution.