Suppose That Only Two Incoming Fraction Defective Levels, 4 Percent

question 32

Multiple Choice

Suppose that only two incoming fraction defective levels, 4 percent and 8 percent, are possible. These incoming fraction defective levels are equally likely. At a 4 percent incoming fraction defective, there's a 60 percent chance that a lot will be accepted. At 8 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?

• A) 40 percent
• B) 20 percent
• C) 10 percent
• D) 4 percent
• E) 2 percent

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Definitions:

Primary Value

The fundamental or intrinsic value of something, not influenced by external factors.

Freedom

The power or right to act, speak, or think as one wants without hindrance or restraint.

Ethical Dilemma

A situation where a person is faced with a choice that involves a conflict between two moral imperatives, neither of which is unambiguously acceptable or preferable.

Clear Decision

An unambiguous and definitive resolution or ruling on a matter, leaving no room for confusion or doubt.