The Quality Control Manager for the NKA Inc Based on Historical Data,if the Lot Is of Poor Quality,40

question 76

Multiple Choice

The quality control manager for the NKA Inc.must decide whether to accept (alternative 1) ,further analyze (alternative 2) ,or reject (alternative 3) the shipment (lot) of incoming material.The historical data indicates that there is 30% chance that the lot is poor quality (S₁) ,50% chance that the lot is fair quality (S₂) ,and 20% chance that the lot is good quality (S₃) .Assume the following payoff table is available.The values in the payoff table are in thousands of dollars. $$\begin{array} { l c c c } & { \text { States of Nature } } \\\text { Decision } & \mathrm { S } _ { 1 } & \mathrm {~S} _ { 2 } & \mathrm {~S} _ { 3 } \\\text { Accept } & 20 & 30 & 90 \\\text { Further analyze } & 60 & 70 & 15 \\\text { Reject } & 80 & 50 & 30\end{array}$$
Based on historical data,if the lot is of poor quality,40% of the items are defective.If the lot is fair quality,22% of the items are defective.If the lot is good quality,10 % of the items are defective.The quality control manager inspects one unit from a recent shipment.After inspecting one unit,the manager determines that the unit is not defective.Based on this additional information,what is the revised (posterior) probability for the further analyze state?

• A)24
• B)52
• C)18
• D)39
• E)78

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Definitions:

Coercive Power

A form of power that is based on the ability to deliver punishments or impose penalties on others.

Expert Power

The influence or authority derived from having specialized knowledge or expertise in a particular area.

Reward Power

Reward power is the capacity to influence others' behavior by controlling the allocation of rewards or benefits.

Countervailing Power

The ability of one group to offset the power or influence of another group, often used in contexts where there is a power imbalance, such as in labor relations.