This OC Curve Represents a Sampling Plan Developed for a Lot

question 24

Multiple Choice

This OC curve represents a sampling plan developed for a lot size of 500, a sample size of 15, and an acceptance number of 2. The probability of acceptance for each of the first six points appears next to the plotted point. What is the average outgoing quality limit?

• A) less than 0.08
• B) greater than or equal to 0.08 but less than 0.09
• C) greater than or equal to 0.09 but less than 0.10
• D) greater than or equal to 0.10

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Definitions:

FDIC

The Federal Deposit Insurance Corporation, an independent agency of the United States government that insures deposits at banks and thrift institutions.

Insures Deposits

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Commercial Banks are financial institutions that accept deposits, offer various banking services like loans and mortgages, and play a significant role in the financial system.

Great Depression

The Great Depression was a severe worldwide economic downturn that lasted from 1929 to the late 1930s, marked by massive unemployment, deflation, and widespread poverty, affecting many countries around the world.