Company uses the following acceptance-sampling procedure

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1. A company uses the following acceptance-sampling procedure. A sample equal to 10% of the lot is taken. If 2% or less of the items in the sample are defective, the lot is accepted; otherwise, it is rejected. If submitted lots vary in size from 5,000 to 10,000 units, what can you say about the protection by this plan? If 0.05 is the desired LTPD, does this scheme offer reasonable protection to the consumer?

2. A company uses a sample size equal to the square root of the lot size. If 1% or less of the items in the sample are defective, the lot is accepted; otherwise, it is rejected. Submitted lots vary in size from 1,000 to 5,000 units. Comment on the effectiveness of this procedure.

Reference no: EM131438277

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