A Sample of 100 Items Is Randomly Selected from a Shipment

question 38

Multiple Choice

A sample of 100 items is randomly selected from a shipment of incoming materials. AQL and LTPD have been established at 0.01 and 0.07, respectively. When four or more defective items are found in a sample, the shipment is rejected. What is the value of α? Table G.1 is appended to this exam.

• A) less than or equal to 0.04
• B) greater than 0.04 but less than or equal to 0.06
• C) greater than 0.06 but less than or equal to 0.08
• D) greater than 0.08

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to sell at different prices, typically upward sloping.

Income

Money received, especially on a regular basis, for work, through investments, or from any other source, used to acquire goods and services.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price over a specific period.

Demand

The inclination and capability of buyers to acquire products and services at specified prices.