A Company Wants to Develop an Acceptance Sampling Plan That

question 53

Multiple Choice

A company wants to develop an acceptance sampling plan that keeps the producer's risk at 0.03 or less and the customer's risk at 0.10 or less.The acceptable quality level (AQL) is 0.01,and the lot tolerance proportion defective (LTPD) has been set at 0.10.Which one of the following plans gives us the desired protection? Table I.1 is appended to this exam.

• A) c = 3, n = 190
• B) c = 2, n = 54
• C) c = 1, n = 30
• D) c = 1, n = 20

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Definitions:

Ratified Inadvertently

Approved or confirmed accidentally or without the full intention to do so.

Full Disclosure

The obligation to reveal all relevant details of a transaction.

Consideration

The value (such as money, services, or goods) that is exchanged between parties in a contract.

Void

A term describing a contract or legal action that is null, having no legal force or effect from the outset.