A Quality Inspector for Alpha-Beta Co

question 14

Multiple Choice

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 he uses an acceptance sampling plan of n = 5 and c = 2,what will be the average outgoing quality (AOQ) for batches with 40% defectives?

• A)0.1270
• B)0.2730
• C)0.3174
• D)0.6826
• E)0.7270

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Definitions:

Dividend Payout Ratio

A financial metric that calculates the percentage of net income distributed to shareholders in the form of dividends.

Total Stockholders' Equity

The total net worth of a company according to its balance sheet, calculated as total assets minus total liabilities.

Common Stock

A type of equity security representing ownership in a corporation, with holders typically having voting rights and receiving dividends.

Dividend Yield Ratio

A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price.