Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 12.10, Problem 37P
Summary Introduction

Interpretation: OC curve needs to be plotted based on the given data.

Concept Introduction: Operating Characteristic curve is a graph that displays the relationship between acceptance probability and defective items percentage.

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Consider the following double sampling plan. First select a sample of 5 from a lotof 100. If there are four or more defectives in the sample, reject the lot. If there isone or fewer defective, accept the lot. If there are two or three defectives, samplean additional five items and reject the lot if the combined number of defectives inboth samples is five or more. If the lot has 10 defectives, what is the probabilitythat a lot passes the inspection? For the double sampling plan described in Problem 39, determine the following:b. The probability that the lot is rejected based on the second sample.
Since each process capability index relies on the estimate of process standard deviation, which in turns relies on sampling, therefore which following statement is INCORRECT?   a. Confidence interval of each capability index should be found, instead of computing only a point estimate. b. Each process capability index follows some distribution. c. Each process capability index is a random variable. d. The distribution of Cpk is approximately normal. e. none of the above
In each of the following situations, indicate whether a fixed (F), sequential (S), or discovery (D) attributes sampling plan is being used.   The audit team has determined the tolerable rate of deviation to be 5%, the risk of overreliance to be 10%, and the expected population deviation rate to be zero. The audit team is performing a sampling application to evaluate the operating effectiveness of an entity’s internal controls. The application used could provide a more efficient method of examination, but it is important that the audit team evaluate the sample in the order they were selected. The audit team established the risk of overreliance to be 5%, the tolerable rate of deviation to be 4%, and the expected population deviation rate to be 3%. Using the AICPA Sample Size tables, the audit team decided to sample over 1,000 items. Using the AICPA Sample Size tables, the audit team determined the appropriate sample size and selected the sample items. However,…
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