Consider a Sampling Plan with N=40 and C=1 and Given

question 2

Multiple Choice

Consider a sampling plan with n=40 and c=1 and given Acceptable quality level (AQL) , Lot tolerance percent defective (LTPD) , producer's risk (α) and consumer's risk (β) .Suppose that c is increased to 2, keeping AQL and LTPD unchanged, consumer's risk (β) will

• A)Always decrease
• B)Always increase
• C)Sometime decrease
• D)Stay the same.
• E)None of the above.

---

Definitions:

Marginal Cost

The cost incurred by producing one additional unit of a product.

Dispose of Cars

The method of disposing of unwanted or obsolete vehicles by means such as recycling, selling, or scrapping.

Variable Costs

Costs that change in proportion to the level of production or business activity.

Square Feet

A unit of area measurement in the Imperial and U.S. customary measurement systems, commonly used to express the size of a space.