This OC Curve Represents a Sampling Plan Developed for a Lot

question 40

Multiple Choice

This OC curve represents a sampling plan developed for a lot size of 500,a sample size of 15,and an acceptance number of 2.The probability of acceptance for each of the first six points appears next to the plotted point.What is the average outgoing quality limit?

• A)less than 0.08
• B)greater than or equal to 0.08 but less than 0.09
• C)greater than or equal to 0.09 but less than 0.10
• D)greater than or equal to 0.10

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Definitions:

Consumer Surplus

The disparity between the total payment consumers are willing and have the ability to make for a good or service, and the payment they indeed make.

Consumer Surplus

The divergence between anticipated consumer expenditure on a good or service and the actual expenditure.

Surplus II

An excess of production or supply over demand, leading to potential wastage or decrease in prices.

Total Surplus

The total benefits society gains, encompassed by the addition of consumer surplus and producer surplus within a market.