A manufacturer produces items having a probability p of being defective. These items are formed into...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A manufacturer produces items having a probability p of being defective. These items are formed into lots of 150. Past experience indicates that p is either 0.05 or 0.25, and furthermore, in 80 percent of the lots produced p equals 0.05 (and in 20 percent of the lots p equals 0.25). These items are then used in an assembly, and ultimately, their quality is determined before the final assembly leaves the plant. The manufacturer can initially screen each item in a lot at a cost of P15 per item, replacing defective items found, or use the items directly without screening. If the latter action is chosen, the cost per lot can be calculated as: Screen Do not screen p=0.05 2,250 750 p=0.25 2,250 3,750 Because screening requires scheduling of inspectors and equipment, the decision to screen or not screen must be made 2 days before the potential screening takes place. However, one item can be taken from the lot and sent to a laboratory, and its quality (defective or non-defective) can be reported before the screen, no-screen decision must be made. The cost of this initial inspection is P125. a) What is the Bayes' action without looking at the single item? b) How much money can be paid for "perfect information" c) What is the optimal expected cost if the quality of items is determined before the screen, no- screen decision is made? d) What is the Bayes' action if the quality of one of the items is determined and found to be defective? A manufacturer produces items having a probability p of being defective. These items are formed into lots of 150. Past experience indicates that p is either 0.05 or 0.25, and furthermore, in 80 percent of the lots produced p equals 0.05 (and in 20 percent of the lots p equals 0.25). These items are then used in an assembly, and ultimately, their quality is determined before the final assembly leaves the plant. The manufacturer can initially screen each item in a lot at a cost of P15 per item, replacing defective items found, or use the items directly without screening. If the latter action is chosen, the cost per lot can be calculated as: Screen Do not screen p=0.05 2,250 750 p=0.25 2,250 3,750 Because screening requires scheduling of inspectors and equipment, the decision to screen or not screen must be made 2 days before the potential screening takes place. However, one item can be taken from the lot and sent to a laboratory, and its quality (defective or non-defective) can be reported before the screen, no-screen decision must be made. The cost of this initial inspection is P125. a) What is the Bayes' action without looking at the single item? b) How much money can be paid for "perfect information" c) What is the optimal expected cost if the quality of items is determined before the screen, no- screen decision is made? d) What is the Bayes' action if the quality of one of the items is determined and found to be defective?
Expert Answer:
Answer rating: 100% (QA)
Answers Gven that production Lot 150 unots probabilit... View the full answer
Related Book For
Probability & Statistics for Engineers & Scientists
ISBN: 978-0130415295
7th Edition
Authors: Ronald E. Walpole, Raymond H. Myers, Sharon L. Myers, Keying
Posted Date:
Students also viewed these mathematics questions
-
Past experience indicates that the time for high school seniors to complete a standardized test is a normal random variable with a mean of 35 minutes. If a random sample of 20 high school seniors...
-
Past experience indicates that the time required for high school seniors to complete a standardized test is a normal random variable with a standard deviation of 6 minutes. Test, the hypothesis that...
-
Past experience indicates that 30% of all individuals entering a certain store decide to make a purchase. Using (a) the binomial distribution and (b) the normal approximation to the binomial, find...
-
How should a corporation estimate the amount of financing it must raise externally during a given year? Once that amount is known, what other decision must be made?
-
Why is data stored so often in "plain vanilla" text files? After all, a text editor like Notepad has virtually no tools for analysis.
-
Consider the inspection described in Example 2.11. Six parts are selected randomly without replacement from a bin of 50 parts. The bin contains 3 defective parts and 47 nondefective parts. Let \(A\)...
-
Equity method entries. Hanna Company purchased 100% of the common stock of Denver Company on January 2 for $550,000. The common stock of Denver Company at this date was $200,000, and the retained...
-
Allocate overhead using a single plantwide rate, multiple department rates, and activity-based costing Downhill Sports Inc. manufactures two products: snowboards and skis. The factory overhead...
-
At the beginning of Year 2, the Redd Company had the following balances in its accounts: Cash ..................................................................$16,900 Inventory...
-
1. In CA, a CPA can take or pay a commission under very limited circumstances. If a online software such as Quickbooks or Freshbooks wants to take 25% of the bookkeeping fee for use of the platform,...
-
A United States Naval base in San Diego, California is currently uninhabitable after a sailor became very ill due to an infectious disease causing a global pandemic. Approximately 6,000 sailors are...
-
what was the main legal argument regarding that The Tobacco Master Settlement Agreement - $206 Billion. The Tobacco Master Settlement - both sides? what was the Resolutions and Conclusions to it?
-
Describe three (3) critical alcohol service protocols to limit commercial liability for sellers of alcohol in Ontario.?
-
Under the Copyright law of Canada, the author of a work/material subject to copyright protection always enjoys exclusive possession over the created work. Applying the relevant legal concepts and...
-
A and B own farms in southern Ontario next to one another in an area where the land registry system applies. They have access to their farms by means of a road that runs along the northerly edge of...
-
In your opinion which is the largest impact on tourism and explain why?
-
a. Why does the Wi-Fi Alliance release compatibility testing profiles in waves instead of combining the entire standards features initially? 27a1.) An 802.11ac Wi-Fi compatibility testing profile...
-
The two-dimensional, infinite corral of figure is square, with edge length L 150 pm. A square probe is centered at xy coordinates (0.200L, 0.800L) and has an x width of 5.00 pm and a y width of 5.00...
-
The following data represent the time, in minutes, that a patient has to wait during 12 visits to a doctor's office before being seen by the doctor. Use the sign test at the 0.05 level of...
-
In exercise physiology, an objective measure of aerobic fitness is the oxygen consumption in volume per unit body weight per unit time. Thirty-one individuals were used in an experiment in order to...
-
In a science museum, you may have seen a Foucault pendulum, which is used to demonstrate the rotation of the earth. In one museums pendulum, the 110 kg bob swings from a 15.8-m-long cable with an...
-
The common field cricket makes its characteristic loud chirping sound using a specialized vibrating structure in its wings. The motion of this structureand the sound intensity that it producescan be...
-
A child on a swing set swings back and forth with a period of 3.3 s and an amplitude of 25. What is the maximum speed of the child as she swings?
Study smarter with the SolutionInn App