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.

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Definitions:

Venture Capital

Money invested in a business by another business firm or group of individuals in exchange for an ownership share.

Commercial Paper

A short-term financial obligation without collateral, provided by companies typically to fund accounts receivable, stock, and to settle short-term debts.

Trade Credit

An arrangement where a supplier allows a customer to purchase goods or services and pay for them at a later date.

Factoring

Factoring is a financial transaction where a business sells its accounts receivable to a third party at a discount in exchange for immediate cash.