Rework Example 9.10, changing the first strategy to an acceptance number of 1, instead of 2. 

Example 9.10

Suppose a manufacturer incurs warranty costs of C_w for every defective unit shipped and it costs C_d to detail an entire lot. The sampling inspection procedure is to inspect n items chosen at random from a lot containing N units, and to make the decision to accept or reject on the basis of the number of defective units found in the sample. Two strategies are to be compared, as follows:

Transcribed Image Text:

Number of Sample Defectives, x Strategy Strategy 2 0 Accept Accept Accept Reject Accept Reject Reject Reject 3 or more