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

question 59

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.
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

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Definitions:

Long-run Equilibrium

A state in an economy or market where all factors of production are fully employed, and supply equals demand, resulting in stable prices and output.

Competitive Price-searcher Market

A market where firms set their own prices due to product differentiation and search costs but still face competition from other firms.

Competitive Price-searcher

A market condition where firms set their prices based on the search and competition among them, yet they have some control over their prices because their products are differentiated.

Marginal Cost

Marginal cost is the additional cost incurred in the production of one more unit of a good or service.