A Single-Sampling Plan by Attributes Is Needed for a Purchased

question 28

Multiple Choice

A single-sampling plan by attributes is needed for a purchased component. Given the following information, what is the producer's risk? Table G.1 is appended to this exam. Sample size = 125
Acceptance number (c) = 4
Acceptance quality level (AQL) = 0.02
Lot tolerance proportion defective (LTPD) = 0.07

• A) .06
• B) .11
• C) .16
• D) .21

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Definitions:

Fixed Costs

Costs that remain constant in total regardless of changes in the level of production or sales volume.

Unit Selling Price

The amount of money charged for one unit of a product or service, often determining revenue and profitability.

Cost-Volume-Profit Graph

A graphical representation that depicts how changes in cost and volume affect a company's profit, used for break-even analysis and profit planning.

Profit Graph

A visual representation of how a company’s profits change at different levels of sales volume or production output.