Question: (3) Drexel Manufacturing Co. uses a single sampling plan to determine the acceptability of shipments of a bearing assembly used in the manufacture of skateboards.

(3) Drexel Manufacturing Co. uses a single sampling plan to determine the acceptability of

shipments of a bearing assembly used in the manufacture of skateboards. For lots of 500

bearings, samples of n = 20 are taken. The lot is rejected if any defectives are found in the

sample.

(a) Suppose that AQL = 0.01 and LTPD = 0.10. Find the probability of and .

(b) Is this plan more advantageous for the consumer or the producer?

(c) The company realized that the producers risk under the current sampling plan is too

high. Thus, both parties agreed to modify the current sampling plan to balance the risks at

about 5% () and 10% (), respectively. What is the suggested new sampling plan, i.e.,

what are n and c, for this goal?

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