An Operating Characteristic (OC) Curve Describes

question 150

Multiple Choice

An operating characteristic (OC) curve describes

• A) how many defects per unit are permitted before rejection occurs.
• B) the sample size necessary to distinguish between good and bad lots.
• C) the most appropriate sampling plan for a given incoming product quality level.
• D) how well an acceptance sampling plan discriminates between good and bad lots.
• E) how many defects per lot are permitted before rejection occurs.

---

Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, not necessarily its market value.

Clientele Effect

A theory suggesting that changes in dividend policy may attract different groups of investors based on their preferences for dividend payouts versus capital gains.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, typically expressed as a percentage.