A Quality Manager Has Established a Sampling Plan That Calls

question 13

Multiple Choice

A quality manager has established a sampling plan that calls for a sample size of 75 units and an acceptance number of 2.The supplier has agreed to a contract that calls for an AQL of 0.02 and an LTPD of .04.What is the probability of accepting the lot if the actual percentage of defective is 3%? Table G.1 is appended to this exam.

• A)less than 0.63
• B)between 0.63 and 0.66
• C)between 0.66 and 0.69
• D)greater than 0.69

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Definitions:

Rates of Return

The increase or decrease in value of an investment during a given time frame, shown as a percentage of the original investment cost.

World Stock Portfolio

A collection of stocks from companies located in various countries around the world, aiming for global diversification.

Volatility

Refers to the degree of variation of a trading price series over time, commonly measured by the standard deviation of logarithmic returns, indicating the risk associated with a security or market.

Treasury Bills

Short-term government securities with maturity periods of one year or less, issued at a discount from their face value.