A Quality Manager Has Established a Sampling Plan That Calls

question 25

Multiple Choice

A quality manager has established a sampling plan that calls for a sample size of 200 units and an acceptance number of 3.The supplier has agreed to a contract that calls for an AQL of 0.01 and an LTPD of .03.What is the producer's risk? Table G.1 is appended to this exam.

• A)more than 0.14
• B)between 0.14 and 0.12
• C)between 0.12 and 0.10
• D)less than 0.10

---

Definitions:

Rights Offering

An offer to existing shareholders to purchase additional shares at a discount before the shares are offered to the public.

Subscription Price

The cost charged to subscribe to a service or investment, such as a magazine subscription or the price to subscribe to shares in a rights issue.