If α = 005 and β = 0

question 25

Multiple Choice

If α = 0.05 and β = 0.10,then __________.

• A)AQL is 5 and LTPD is 10%
• B)the customer expects to accept lots that exceed the LTPD about 5% of the time and the company expects to reject that are as good or better than the AQL about 10% of the time
• C)the customer expects to accept lots that exceed the LTPD about 10% of the time and the company expects to reject that are as good or better than the AQL about 5% of the time
• D)the customer expects to accept lots that exceed the AQL about 5% of the time and the company expects to reject that are as good or better than the LTPD about 10% of the time

---

Definitions:

EBITDA Coverage Ratio

Similar to the times-interest-earned ratio, but it recognizes that many firms lease assets and also must make sinking fund payments. It is found by adding earnings before interest, taxes, depreciation, and amortization and lease payments, then dividing this total by interest charges, lease payments, and sinking fund payments over 1 minus the tax rate.

TIE

Times Interest Earned, a financial metric indicating how well a company can meet its interest obligations based on current earnings.

DSO

Days Sales Outstanding, a measure of the average number of days that a company takes to collect payment after a sale has been made.

Repurchase

This refers to the action of buying back previously sold products or shares, often used as a way to return capital to shareholders or reduce outstanding shares.