Which of the Following Is True Regarding the Average Outgoing

question 110

Multiple Choice

Which of the following is true regarding the average outgoing quality level?

• A) An AOQ value of 1 is ideal, because all defects have been removed.
• B) AOQ is always greater than AQL but less than LTPD.
• C) AOQ rises (worsens) following inspection of failed lots.
• D) AOQ is very low (very good) for extremely poor quality lots.
• E) None of the above is true.

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Definitions:

Utility

A measure of satisfaction or pleasure that a consumer receives from consuming goods and services.

Marginal Utility Curve

A graphical representation showing the relationship between the quantity of a good consumed and the marginal utility (satisfaction) derived from it.

Negative

Refers to a detrimental or adverse condition, effect, or impact.

Marginal Utility

The change in satisfaction or utility that a person receives from consuming one additional unit of a good or service.