A Quality Inspector for Alpha-Beta Co

question 43

Multiple Choice

A quality inspector for Alpha-Beta Co. is concerned about the quality of the batch of several thousand blank DVD disks which his company produced this week and is preparing to ship. If the cost of replacing a defective DVD disk once it has been shipped is $2.00, while the cost of 100 percent inspection prior to shipment is $.40 each, at what point is he indifferent between 100 percent inspection and shipment without inspection?

• A) 0 percent defectives
• B) 2 percent defectives
• C) 5 percent defectives
• D) 20 percent defectives
• E) 30 percent defectives

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Definitions:

Unreasonable Risk

A hazard or threat that is not justifiable given the circumstances, often indicating negligence or a failure to follow best practices.

Strict Liability

A legal principle that holds an individual or entity responsible for their actions or products, without the need to prove negligence or fault.

Fault

Responsibility for wrongdoing, error, or negligence, often determining liability in legal contexts.

Comparative Negligence

A legal doctrine in tort law that reduces the amount of damages a plaintiff can recover in a negligence-based claim, based upon the degree to which the plaintiff's own negligence contributed to cause the injury.