A Single-Sampling Plan by Attributes Is Needed for a Purchased

question 63

Multiple Choice

A single-sampling plan by attributes is needed for a purchased component. Given the following information, what is the consumer's risk? Table G.1 is appended to this exam. Sample size = 100
Acceptance number (c) = 1
Acceptance quality level (AQL) = 0.02
Lot tolerance proportion defective (LTPD) = 0.07

• A) .003
• B) .004
• C) .005
• D) .006

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Definitions:

Contingent Liabilities

Possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

Contingent Assets

Possible assets that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of certain future events not wholly within the control of the company.

Constructive Obligation

An obligation that derives from an entity’s actions where: (a) by an established pattern of past practice, published policies or a sufficiently specific current statement, the entity has indicated to other parties that it will accept certain responsibilities; and (b) as a result, the entity has created a valid expectation on the part of those other parties that it will discharge those responsibilities.

Legal Obligation

A duty enforceable by law, deriving from statutes, contracts, or legal precedents.