The Quality Manager for Graphics,Inc

question 29

Multiple Choice

The Quality Manager for Graphics,Inc.is concerned about the quality of the lot of several thousand posters which her company printed this week and is now preparing to ship.If the indifference point between complete inspection or shipment without inspection is 12% defectives,and she decides to sample 15 posters (n = 15) ,what is the maximum number of sample defectives (c) for which this lot would be accepted for shipment without further inspection?

• A)0 defectives
• B)1 defective
• C)2 defectives
• D)3 defectives
• E)4 defectives

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Definitions:

Futures Contract

A standardized legal agreement to buy or sell a particular commodity or financial asset at a predetermined price at a specific time in the future.

Clearinghouse

Established by exchanges to facilitate transfer of securities resulting from trades. For options and futures contracts, the clearinghouse may interpose itself as a middleman between two traders.

Taxation

The process whereby authorities impose financial charges on individuals or legal entities, which can have implications for investment decisions.

Futures Trading

Involves buying and selling futures contracts which are agreements to buy or sell an asset at a future date for a price that is decided now.