A Lot of 1,000 Items Is on the Loading Dock

question 42

Multiple Choice

A lot of 1,000 items is on the loading dock.A single-sampling plan calls for a sample size of 10.The following table gives the probability of acceptance for the plan over a range of possible quality levels.
$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Proportion } \\\text { Defective }\end{array} & \begin{array} { c } \text { Probability of } \\\text { Acceptance }\end{array} \\\hline 0.01 & 0.97 \\\hline 0.02 & 0.85 \\\hline 0.03 & 0.60 \\\hline 0.04 & 0.50 \\\hline 0.05 & 0.24 \\\hline 0.06 & 0.05 \\\hline\end{array}$$
What is the average outgoing quality limit for this plan?

• A) Less than or equal to 0.018
• B) Greater than 0.0180 but less than or equal to 0.0200
• C) Greater than 0.0200 but less than or equal to 0.0220
• D) Greater than 0.0220

Understand the FIFO (First-In, First-Out) method in process costing.

Compute equivalent units of production using the FIFO method.

Derive and calculate cost per equivalent unit for materials and conversion costs.

Construct cost reconciliation reports.

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Deduction

The process of reasoning from one or more general premises to reach a logically certain conclusion.

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A comparison between two things, typically for the purpose of explanation or clarification.

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A conclusion is the final part of an argument or process, logically deduced from the premises or evidence presented.

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