A Single-Sampling Plan Using a Sample Size of 50 on a Lot

question 3

Multiple Choice

A single-sampling plan using a sample size of 50 on a lot size of 2,000 has the following performance:
$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Proportion } \\\text { Defective }\end{array} & \begin{array} { c } \text { Probability of } \\\text { Acceptance }\end{array} \\\hline 0.01 & 0.98 \\\hline 0.02 & 0.95 \\\hline 0.03 & 0.90 \\\hline 0.04 & 0.74 \\\hline 0.05 & 0.41 \\\hline 0.06 & 0.15 \\\hline\end{array}$$
Today the company making the purchase receives two lots of 2,000 items and the inspection department is in a big hurry.Which action will result in an identical AOQL for the purchasing company?

• A) Take a random sample of 25 from each lot and accept or reject both lots based on the results.
• B) Take a random sample of 50 from one lot and accept or reject the second lot based on the first lot's results.
• C) Take a random sample of 100 from one lot and accept or reject the second lot based on the first lot's results.
• D) Take a random sample of 50 from each lot and accept or reject each lot based on the results.

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Definitions:

FASB

stands for the Financial Accounting Standards Board, which is responsible for establishing accounting and financial reporting standards in the United States.

Total Liabilities

The combined debts and obligations that a company owes to outside parties at any given time.

Total Assets

The sum of all assets, both current and noncurrent, owned by an entity, reflecting the total resources at its disposal.

Stockholders' Equity

The portion of the balance sheet that represents the equity or ownership interest of shareholders in a company.