The Quality Control Manager for NKA Inc

question 5

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 expected monetary value criterion?

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Definitions:

Typical Impedance

A standard or average measure of the total resistance faced by current in an electrical circuit, combining both resistive and reactive elements.

Nonconductive

A property of a material that does not allow electric current to flow through it easily.

Insulation

A resistive coating that prevents the flow of electrons.

Mil-foot

A unit of measurement used in the United States to denote the product of a material's thickness in mils and its length in feet, commonly applied in the measurement of wire cross-sectional area.