The Ability of a Sampling Plan to Discriminate Between Lots

question 7

Multiple Choice

The ability of a sampling plan to discriminate between lots of high quality and lots of low quality is described by:

• A) a Gantt chart.
• B) an operating characteristic curvE.
• C) an average outgoing quality curve.
• D) a process control chart.
• E) a range chart.

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Definitions:

Annual Rate

The interest rate for a period of one year, often used to compare the yearly interest between financial products without compounding.

Appreciated

Refers to an increase in the value of an asset over time.

Compounded Semiannually

Interest calculated twice per year, with the first period's interest being added to the principal before the second period's interest is calculated.

Strip Bond

A financial instrument obtained by separating the coupons from the principal of a bond, which then sells each part as a zero-coupon bond.