Given the Following Acceptance Sampling Data for a Lot of Several

question 33

Short Answer

Given the following acceptance sampling data for a lot of several thousand units of a finished good:
Per-unit cost of replacing a defective unit after it has been shipped is $5.00
Per-unit cost of 100 percent inspection prior to shipment is $.60.
What is the point of indifference between 100 percent inspection and shipment without inspection?

---

Definitions:

Implication (Imp)

A logical relationship where if the first statement (antecedent) is true, then the second statement (consequent) must also be true.

Quantifier Negation

In logic, the process of negating a quantified statement, which can change the original scope and meaning of the statement.

Universal Generalization

A logical operation that asserts that a property or relation holds for all members of a certain category.

Existential Generalization

A logical operation that infers the existence of at least one member of a group from a statement about an individual or individuals.