In an Acceptance Sampling Plan Developed for Lots Containing 1000

question 207

Multiple Choice

In an acceptance sampling plan developed for lots containing 1000 units, the sample size n is 75. The percent defective of the incoming lots is 2%, and the probability of acceptance is 0.55. What is the average outgoing quality?

• A) 1.02%
• B) 0.11%
• C) 0.01%
• D) 0.08%
• E) 98.98%

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Definitions:

Owners

Individuals or entities that hold the ownership interest in a company, entitling them to the residual profits and assets after liabilities are settled.

Corporation's Charter

A legal document that establishes a corporation, outlining its structure, operations, and objectives, issued by a governmental or other authorized entity.

Articles of Incorporation

Official papers submitted to a government agency for the purpose of officially registering the formation of a corporation.

Mutual Agency

Act of a single partner is binding on all members of the partnership.