Suppose That Only Two Incoming Fraction Defective Levels, 2 Percent

question 51

Multiple Choice

Suppose that only two incoming fraction defective levels, 2 percent and 6 percent, are possible. The 2 percent incoming fraction defective level is twice as likely as the 6 percent. At a 2 percent incoming fraction defective, there's an 80 percent chance that a lot will be accepted. At 6 percent incoming fraction defective, there's a 20 percent chance that a lot will be accepted. Lots that are not accepted are subject to 100 percent sorting. What is average outgoing quality (approximately) ?

• A) 1.60 percent
• B) 1.47 percent
• C) 1.20 percent
• D) .73 percent
• E) .80 percent

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Definitions:

Economic Gain

The increase in economic wealth or benefit, typically measured in terms of profit, revenue growth, or asset value.

Self-interest

The motivation based on one's own benefit or advantage, often considered as the primary motivating factor behind human actions.

Productivity

The measure of efficiency in which goods and services are produced, often assessed through output per unit of input (like labor, time, or cost).

Unconscious Mind

The part of the mind that is not in current awareness but influences thoughts, feelings, actions, and behaviors without one's conscious realization.