As the supervisor in charge of shipping and receiving, you need to determine the

Question

As the supervisor in charge of shipping and receiving, 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 4.0%. Your plan is to sample 80 units of every 1,000 in a lot The number of defects in a sample not to exceed 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 your response as a percentage rounded to two decimal places).

Explanation / Answer

In Single Sampling Plan

AOQ = Pa*p*(N - n)/N

where

N be the Lot size = 1000

n be the sample size = 80

Pa be probability of lot acceptance = 0.79

p be the fraction defective = 0.04

AOQ = 0.79*0.04*(1000 - 80)/1000 = 0.029 = 2.90%

That is the average outgoing quality is 2.9% defective.

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