The Quality Control Manager for NKA Inc

question 71

Short Answer

The quality control manager for NKA Inc. must decide whether to accept (alternative 1), further analyze (alternative 2), or reject (alternative 3) an incoming shipment (lot) of microchips. The historical data indicate that there is a 30 percent chance that the lot is poor quality (S₁), 50 percent chance that the lot is fair quality (S₂), and 20 percent chance that the lot is good quality (S₃). Assume the following payoff table is available. The values in the payoff table are in thousands of dollars.
Bf the lot is poor quality, 40 percent of the items are defective. If the lot is fair quality, 22 percent of the items are defective. If the lot is good quality, 10 percent of the items are defective. The quality control manager inspects one unit from a recent shipment. After inspecting it, he determines that the unit is defective. Given that the inspected item is defective, determine which alternative action the quality control manager should choose.

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Definitions:

Social Entertainment Zone

An area within social media platforms dedicated to providing entertainment content such as games, videos, and music to users.

Pleasure and Enjoyment

The positive emotional response and satisfaction derived from engaging in an activity or experiencing a product or service.

Performances

Events where artists, entertainers, or speakers present their work live to an audience, or the execution and efficiency with which tasks and activities are carried out.

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