The Quality Control Manager for the NKA Inc

question 50

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. Based on historical data,if the lot is 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 it,he determines that the unit is defective.If the inspected item is defective,determine which alternative action the quality control manager should choose.

Understand the concept of deadweight loss resulting from a tax and its implications on market efficiency.

Recognize how elasticity of supply and demand affects the outcome of a tax imposition.

Understand the administrative and compliance costs associated with taxes.

Comprehend the effects of taxes on specific markets, such as SUVs and lattes.

---

Definitions:

Skills

The ability to perform tasks and solve problems due to knowledge, practice, aptitude, or a combination of these.

Performance Measurement

The process of evaluating the efficiency and effectiveness of an individual’s or organization’s output.

Objectives And Standards

Specific goals and benchmarks against which performance is measured or assessed.

Cash Bonuses

Monetary awards given to employees as recognition for their performance, efforts, or achievements.