A Sampling Plan States That If 20 Incoming Transistors Are

question 76

Multiple Choice

A sampling plan states that if 20 incoming transistors are checked and 2 or less defects are found,the lot is accepted. If an incoming lot is 10 percent defective,what is the probability of accepting the lot of transistors?

• A)0
• B)1
• C)0.677
• D)0.333

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Definitions:

Present Values

The current value of a future amount of money or stream of cash flows given a specified rate of return.

Net Present Value

A financial metric that calculates the value of projected cash flows, discounted back to the present value.

Firm's Cost

The total expenses incurred by a company, including production, operation, and overhead costs.

Reinvestment Assumption

The presumption that cash flows received from an investment will be reinvested at a rate consistent with the investment's original rate of return.