The Quality Control Manager for NKA Inc

question 23

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 defective.Based on this additional information,determine the revised (posterior)probabilities for each of the three states of nature.

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Definitions:

Replacement Selection

The process of identifying and selecting a candidate to replace an existing employee within an organization.

Mission Statement

A brief description of an organization's fundamental purpose and guiding principles, intended to inform its strategic vision and direction.

Organization's Vision

A strategic statement that outlines what an organization aspires to achieve in the future, guiding its direction and decision-making processes.

Values

Values are core beliefs or ideals that guide behavior, influence decisions, and shape cultural norms.