The number of products shipped on time is 75% of 1000 = 750
The number of products shipped late is 25% of 1000 = 250
The number of defective product from the products that shipped on-time is 10% of 750 = 75
The number of defective product from the products that shipped late is 5% of 250 = 12.5
The total number of defective products is 75+12.5 = 87.5.
This is 87.5 out of 1000 products and as percentage it's [tex] \frac{87.5}{1000}=0.0875 [/tex]×100 = 8.75%