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A Quality Inspector for Alpha-Beta Co

question 21

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A Quality Inspector for Alpha-Beta Co.is concerned about the quality of the batch of several thousand Gizmos which his company produced this week and is preparing to ship.If the cost of replacing a defective Gizmo once it has been shipped is $2.00,while the cost of 100% inspection prior to shipment is $.40 each,at what point is he indifferent between 100% inspection or shipment without inspection?


Definitions:

Tubular Secretion

A biological process within the nephrons of the kidneys where substances are secreted from the blood into the tubular fluid to be eliminated in urine.

Filtrate

The fluid that has passed through a filter, which typically consists of substances that remain after larger particles have been removed.

Urine Formation

The process of filtering blood and removing waste products and excess substances to produce urine.

Nephridium

Of some invertebrates, an organ that takes up body fluid and expels excess water and solutes through a pore at the body surface.

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