Question: A company orders bolts in bulk from a vendor. The contract specifies that a shipment of bolts will be accepted by testing the null hypothesis that the percentage defective in the shipment is not more than 3% at an α of 5% using random sampling from the shipment. The company further wishes that any shipment containing 8% defectives should have no more than 10% chance of acceptance.
a. Find the minimum sample size required.
b. For the sample size found in the previous question, plot the OC curve.
c. For the actual percentage defective varying from 6% to 10% and ß varying from 8% to 12%, tabulate the minimum sample size required.