As the supervisor in chage of shipping and recieving, you need to determine the

Question

As the supervisor in chage of shipping and recieving, you need to determine the average outgoing quality in a plant where the known incoming lots from your assembly line have an average defective rate of 3/0%. Your plan is to sample 80 units of every 1,000 in a lot. The number defects in a sample is not to exeed 3. Such a plan provides you with a probability of acceptance of each lot of 0.79 (79%).

The average outgoing quality for the plant is=    ( enter response as a percentage rounded to two decimal places).

Explanation / Answer

Use the following formula to calculate the average outgoing quality :
AOQ= Pd * PD * (N-n)/N

Pd = True percentage defective of the lot=O.03
PD= Probability of accepting the lot for a sample=0.79
N =Numberofitemsinthelot=1000
n = number of items in the sample=80
AOQ = 0.03*0.79*(1000 - 80) / 1000
= 0.021804
= 2.18%
The average outgoing quality for the plant is = 2.18% (Enter as a percentage rounded to
two decimal places)

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