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

question 93

Essay

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 defective.If the inspected item is defective,determine which alternative action the quality control manager should choose.

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Definitions:

Public Agreement

The phenomenon where individuals conform to the majority view in public settings, regardless of their private beliefs.

Social Commitment

A personal investment or obligation towards a group, cause, or social relationship.

Norm Of Reciprocity

A social principle that suggests individuals should return favors and treat others as they have been treated, facilitating cooperation and social exchange.

Self-Perception Theory

The theory suggesting that individuals develop their attitudes and opinions by observing their own behavior and concluding what attitudes must have caused them.