If He Uses an Acceptance Sampling Plan of N =

question 54

Multiple Choice

If he uses an acceptance sampling plan of n = 5 and c = 2, what will be the average outgoing quality (AOQ) for batches with 40% defectives?

• A)0.1270
• B)0.2730
• C)0.3174
• D)0.6826
• E)0.7270

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Definitions:

Lump Sum Payment

A one-time payment made specifically rather than multiple smaller payments over time.

Obligations

Duties or responsibilities imposed legally or socially, requiring a person or entity to act or refrain from acting in a certain manner.

Compounded Monthly

Interest on a loan or investment calculated each month and added to the balance, so future interest accrues on a larger total.

Savings

Money set aside for future use rather than spending immediately.