If All Other Factors Specified in an Attributes Sampling Plan

question 62

Multiple Choice

If all other factors specified in an attributes sampling plan remain constant,decreasing the tolerable rate and increasing the estimated population deviation rate would have what effect on sample size?

• A)Increase.
• B)Remain the same.
• C)Decrease.
• D)Indeterminate,depends upon exact change being made.

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Definitions:

Trade Payables

Amounts owed by a company to its suppliers or vendors for goods and services received but not yet paid for.

Revolving Credit Agreement

A credit arrangement that allows a borrower to withdraw, repay, and re-borrow funds up to a specified limit over a set period.

Agreed Limit

An agreed limit refers to a predetermined maximum amount that an insurance company agrees to pay out for a specific claim or coverage.

Policy Decisions

Decisions made by an organization's leadership or governing body that set its policies, determining strategic direction and actions.