Acceptance sampling, Financial Econometrics

 

Acceptance Sampling is a statistical measure used in quality control. A company cannot test all of its products because of ruining the products, or the volume of products being very large. Acceptance sampling resolves this by checking a sample of product for defects. The process includes sample size, batch size and the number of defects suitable in the batch. This process permits a company to determine the quality of a batch with a particular degree of statistical certainty without having to check every unit of product. The statistical reliability of a sample is usually measured through a t-statistic. 

For Example - If a company manufactures millions of product and tests 10 units with one default then an hypothesis would be made on probability that 10,000 of the 1,00,000 are defective. Though, this could be a grossly inaccurate representation. More dependable conclusions can be made by raising the batch size higher than 10, and rising the sample size by doing more than merely one test and averaging the results. When done properly, acceptance sampling is a highly efficient tool in quality control.

 

 

 

Posted Date: 7/27/2012 1:42:56 AM | Location : United States







Related Discussions:- Acceptance sampling, Assignment Help, Ask Question on Acceptance sampling, Get Answer, Expert's Help, Acceptance sampling Discussions

Write discussion on Acceptance sampling
Your posts are moderated
Related Questions
Question 1: (a) Describe clearly the main theories of interest rate determination. (b) Critically assess the relationship between interest rate and Money supply. Questio

Question 1: (a) As a small island economy , Mauritius had to face a number of constraints in order to transform itself from mono-cop economy into a well diversified midd

To buy a retirement home, you will need $525,000 in 18 years. If funds can be invested at an effective return of 6 percent a year, how much must you invest today to have the desire

Could you please explain me how to determine the marketing pricing of a industril products? For explam a component in air conditioning. No standard parts in marketing.

Organisations involved in international trade and investment seek economic and political stability. For this reason it is prudent for those organisations to conduct a country risk

If current ratio for a company is equal to its acid test (that is, quick ratio), then: A: The current ratio must be less than one. B: Working capital is negative. C: Trade

Power is a listed group reporting under IFRS. The group was established when Power purchased an 80% of the ordinary share capital of Shuttle, a listed company, on 1 January 2009 fo

PASE plc is a UK-based international energy company, which currently operates wholly-owned subsidiaries in Europe and North America. PASE plc's strategy is to generate future growt

Problem 1: (a) Analyze the asset price channels other than the traditional interest rate channel. (b) Analyze Bank lending channel and discuss its importance for the Mau

The demand equation for Good Y is given by             P = 900/q - 0.48q + 100       q > 0 In this question use derivatives to explore the relationship between the demand for