The Quality Control Manager for NKA Inc

question 80

Essay

The quality control manager for NKA Inc.must decide whether to accept (alternative 1),further analyze (alternative 2),or reject (alternative 3)an incoming shipment (lot)of microchips.The historical data indicate that there is a 30 percent chance that the lot is poor quality (S₁),50 percent chance that the lot is fair quality (S₂),and 20 percent 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. What alternative action should be selected according to the maximax criterion?

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Definitions:

Useful Information

Data that is relevant, accurate, and timely, aiding in decision making by providing significant insight or knowledge.

Policies And Programs

Established guidelines and planned activities designed to achieve specific goals within an organization.

Facial Expressions

The movements of the muscles beneath the skin of the face, used as non-verbal communication to convey emotions and reactions.

Posture

The way in which someone holds their body when standing or sitting, often reflecting confidence, attitude, or current state of health.