Acceptance Sampling

question 53

Multiple Choice

Acceptance sampling

• A) is the application of statistical techniques to the control of processes.
• B) was developed by Walter Shewhart of Bell Laboratories.
• C) is used to determine whether to accept or reject a lot of material based on the evaluation of a sample.
• D) separates the natural and assignable causes of variation.
• E) is based on standard deviations rather than range values.

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Definitions:

Annual Coupon

The yearly interest payment made by a bond issuer to its bondholders.

Market Rate

The prevailing interest rate available in the marketplace on investments or loans.

Sinking Funds

A fund formed by periodically setting aside money for the gradual repayment of a debt or replacement of a wasting asset over time.

Bondholders

Individuals or entities who hold the debt securities issued by corporations or governmental entities, thereby lending them money in return for interest payments and the repayment of principal.