Final answer:
To ensure that only 1 lid out of every 1,000 will be too small to fit, the supplier should set the mean diameter of its large-cup lids at -0.08 inch.
Step-by-step explanation:
To determine the value at which the supplier should set the mean diameter of its large-cup lids, we need to use the concept of z-scores. The formula for calculating the z-score is: z = (x - μ) / σ, where x is the desired value, μ is the mean, and σ is the standard deviation. In this case, the z-score of -3 indicates that the desired value should be 3 standard deviations below the mean.
Using the z-score formula, we have: z = (-0.02 - μ) / 0.02. Solving for μ, we get: μ = -0.02 - (3 * 0.02) = -0.08 inch.
Therefore, the supplier should set the mean diameter of its large-cup lids at -0.08 inch, so that only 1 lid out of every 1,000 will be too small to fit.