A firm receives components from a supplier, which it uses

A firm receives components from a supplier, which it uses in its own production. The components are delivered in batches of 2000. The supplier claims that there are only 1% defective components on average from its production. However, production occasionally gets out of control and a batch is produced with 10% defective components. The firm wishes to intercept these low-quality batches, so a sample of size 50 is taken from each batch and tested. If two or more defectives are found in the sample then the batch is rejected.

(a) Describe the two types of error the firm might make in assessing batches of components.

(b) Calculate the probability of each type of error given the data above.

(c) If instead, samples of size 30 were taken and the batch rejected if one or more rejects were found, how would the error probabilities be altered?

(d) The firm can alter the two error probabilities by choice of sample size and rejection criteria. How should it set the relative sizes of the error probabilities

(i) if the product might affect consumer safety?

(ii) if there are many competitive suppliers of components?

(iii) if the costs of replacement under guarantee are high?

How Our Website Works

1. FILL IN OUR SIMPLE ORDER FORM

It has never been easier to place your order. Fill in the initial requirements in the small order form located on the home page and press “continue” button to proceed to the main order form or press “order” button in the header menu. Starting from there let our system intuitively guide you through all steps of ordering process.

2. PROCEED WITH THE PAYMENT

All your payments are processed securely through PayPal. This enables us to guarantee a 100% security of your funds and process payments swiftly.

3. WRITER ASSIGNMENT

Next, we match up your order details with the most qualified freelance writer in your field.

4. WRITING PROCESS

Once we have found the most suitable writer for your assignment, they start working on a masterpiece just for you!

5. DELIVERY

Once finished, your final paper will be available for download through your personal dashboard. You will also receive an email notification with a copy of your paper attached to it. Sometimes, the writer may leave a note for you about the order in case there is any additional information that they need to give you.

Leave a Reply

Your email address will not be published.