The Quality Manager for Frozen Pizzas, Inc

question 37

Multiple Choice

The quality manager for Frozen Pizzas, Inc., is concerned about the quality of the lot of several thousand pizzas which his company produced this week, and is now ready to ship. If he uses an acceptance sampling plan of n = 8 and c = 1, what is the probability that, if this lot is 15 percent defective, it will be rejected and completely inspected prior to shipment?

• A) .8948
• B) .8131
• C) .6572
• D) .5033
• E) .3428

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Definitions:

Fair Market Value

The price at which an asset would sell in the market under conditions where buyers and sellers are acting freely, informed, and without undue pressure.

Book Value

The net value of a company's assets as listed on the balance sheet, calculated as total assets minus intangible assets (like goodwill) and liabilities.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Salvage Value

The estimated residual value of an asset at the end of its useful life, reflecting what the asset can be sold for or its scrap value.