The Quality Manager for Microelectronics, Inc

question 2

Multiple Choice

The quality manager for Microelectronics, Inc., is concerned about the quality of the batch of several thousand Z-box games which his company is about to ship. If he uses an acceptance sampling plan of n = 20 and c = 1, what is the probability that, if this batch is 15 percent defectives, it will be rejected and completely inspected prior to shipment?

• A) .0263
• B) .1237
• C) .1756
• D) .8244
• E) .9737

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Definitions:

Tying Contract

An agreement where the sale of one product (the tying product) is conditional on the purchase of another product (the tied product).

Clayton Act

A U.S. antitrust law enacted in 1914 aimed at promoting competition among businesses by prohibiting certain types of conduct that would lead to anti-competitive practices.

Herfindahl Index

A measure of market concentration, calculated by squaring each firm's market share and then summing these squares, used to assess competition.

Pre-Merger

The phase before the completion of a merger in which planning and negotiation occur.