Assume there are a total of 1000000 contracts. Assume there are 120 bad contracts in total.
Assume that company 1 issues 500000/1000000 contracts and 70 are deemed bad. Assume that company 2 issues 100000/1000000 contracts and 50 are deemed bad
Assume there are lots of companies.
Clearly from the example above, company 1 is better than company 2, it issued 5 times as many contracts but only 20 more contracts are bad.
How do I go about ranking the companies based on who's most reliable at issuing contracts?