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In the Table Below Are Selected Values for the OC

question 55

Essay

In the table below are selected values for the OC curve for the acceptance sampling plan n = 210, c = 6. Upon failed inspection, defective items are replaced. Calculate the AOQ for each data point. (You may assume that the population is much larger than the sample.) Plot the AOQ curve. At approximately what population defective rate is the AOQ at its worst? Explain how this happens. How well does this plan meet the specifications of AQL = 0.015, α = 0.05; LTPD = 0.05, β = 0.10? Discuss.
 Population percent defective  Probability of acceptance 0.001.000000.010.994080.020.866500.030.556230.040.265160.050.100560.060.032170.070.009050.080.002310.090.000540.100.00012\begin{array} { | c | c | } \hline \text { Population percent defective } & \text { Probability of acceptance } \\\hline 0.00 & 1.00000 \\\hline 0.01 & 0.99408 \\\hline 0.02 & 0.86650 \\\hline 0.03 & 0.55623 \\\hline 0.04 & 0.26516 \\\hline 0.05 & 0.10056 \\\hline 0.06 & 0.03217 \\\hline 0.07 & 0.00905 \\\hline 0.08 & 0.00231 \\\hline 0.09 & 0.00054 \\\hline 0.10 & 0.00012 \\\hline\end{array}


Definitions:

Aggregate Demand

Aggregate requirement for goods and services within an economic system, evaluated at a fixed comprehensive price level over a defined period.

National Debt

The total amount of money that a country's government has borrowed, by various means, to cover its spending in excess of tax revenues.

Federal Budget Deficit

The shortfall when the federal government's expenditures exceed its revenues within a fiscal year.

Federal Budget Deficit

The financial situation where the federal government's expenditures exceed its revenues in a given fiscal year.

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