The Quality Manager for Frozen Pizzas, Inc

question 6

Multiple Choice

The quality manager for Frozen Pizzas, Inc., is concerned about the quality of the lot of several thousand pizzas which his company produced this week, and is now ready to ship. If he uses an acceptance sampling plan of n = 8 and c = 1, what is the probability that, if this lot is 10 percent defective, it will be accepted for shipment without inspection?

• A) .9619
• B) .9428
• C) .8131
• D) .4305
• E) .1869

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Definitions:

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Credit Sales

Transactions where goods or services are sold by a business but payment is received at a later date.

Cash Sales

Transactions in which payment for goods or services is made at the time of sale, typically in cash form.

Manufacturing Costs

Costs associated with the production of goods, including direct materials, direct labor, and manufacturing overhead.