In Most Acceptance Sampling Plans, When a Lot Is Rejected

question 150

Multiple Choice

In most acceptance sampling plans, when a lot is rejected, the entire lot is inspected and all defective items are replaced. When using this technique the AOQ:

• A) worsens (AOQ becomes a larger fraction).
• B) improves (AOQ becomes a smaller fraction).
• C) is not affected, but the AQL is improved.
• D) is not affected.
• E) falls to zero.

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Definitions:

Rescission

The act of canceling, voiding, or annulling a contract, returning the parties to their positions prior to the contract.

Usury

Charging an illegal rate of interest.

Lawful Maximum

The highest limit allowed by law, often referring to interest rates, fees, or other financial charges.

Interest Rate

An Interest Rate is the percentage charged on the total amount of borrowed money or paid on savings, over a specific period of time.