The Quality Control Manager for NKA Inc

question 4

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. Based on historical data,if the lot is poor quality,40 percent of the items are defective.If the lot is fair quality,22 percent of the items are defective.If the lot is good quality,10 percent 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 not defective.Based on this additional information,determine the revised (posterior)probabilities for each of the three states of nature.

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Definitions:

Montgomery Bus Boycott

A civil rights protest in 1955-1956 in Montgomery, Alabama, where African Americans refused to ride city buses in protest of segregated seating, marking a significant victory in the civil rights movement.

African-American Protest Movement

A series of movements and protests by African-Americans, especially in the mid-20th century, aimed at ending racism, segregation, and enforcing civil rights.

Bloc Voting

The practice of a group of voters casting their ballots in favor of candidates or policies that benefit their group interests.

Smith v. Allwright

A landmark Supreme Court case in 1944 that ruled white primaries unconstitutional, marking a significant step towards ending racial discrimination in voting.