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:

Inelastic

Describes a situation where the demand or supply for a good or service is not significantly altered when the price changes.

Elastic

A characteristic of a product or service indicating that a change in price leads to a significant change in the quantity demanded or supplied.

Laffer Curve

An illustration of the relationship between tax rates and tax revenue, suggesting that there is an optimal tax rate that maximizes revenue.

Tax Rate Reductions

A decrease in the percentage at which income or transactions are taxed by governmental authorities.