Consider a Company That Wishes to Verify That an Incoming

question 75

Multiple Choice

Consider a company that wishes to verify that an incoming product meets the stipulated requirements by screening the products using a statistical sampling plan. If the sample inspection reveals that a lot was accepted even though it had more defects than it should,this is referred to as ________.

• A)a Type I error
• B)producer's risk
• C)consumer's risk
• D)a sampling error

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Definitions:

Valid Acceptance

An unqualified expression of assent to the terms of an offer, forming a contract.

Present Intent

A legal term indicating a person's current intention to perform an act or designate a legal status to an item of property.

UCC

Stands for Uniform Commercial Code; a comprehensive set of laws governing all commercial transactions in the United States.

Shipment

The process of transporting goods from one place to another.