Question: 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

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. Submitted lots vary in size from 5,000 to 10,000 units.

a) Suppose that the lot size is = 5,000, what is the probability of accepting a given lot under this plan if the fraction defective in a lot is 2.5%?

b) Suppose that the lot size is = 10,000, what is the probability of accepting a given lot under this plan if the fraction defective in a lot is 2.5%?

c) In view of the answers in parts (a) and (b), what can you say about the protection of this plan?

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