In Acceptance Sampling, If the Number of Defects in a Sample

question 75

True/False

In acceptance sampling, if the number of defects in a sample is less or equal to the acceptance number, then the incoming lot is accepted.

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Definitions:

Financial Guarantees Contracts

Contracts that require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due.

Derivatives

Financial securities whose value is derived from the value of an underlying asset or benchmark.

AASB 9

The Australian Accounting Standards Board standard covering the classification, measurement, and recognition of financial assets and financial liabilities.

Business Model Test

The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows.