In acceptance sampling a manager can reach the wrong


TRUE/FALSE 

1.A c-chart is appropriate to plot the number of flaws in a bolt of fabric. 

2.The x-bar chart, like the c-chart, is based on the exponential distribution. 

3.A process that is in statistical control will always yield products that meet their design specifications. 

4.The higher the process capability ratio, the greater the likelihood that process will be within design specifications. 

5.The Cpk index measures the difference between desired and actual dimensions of goods or services produced. 

6.Acceptance sampling accepts or rejects an entire lot based on the information contained in the sample. 

7.A lot that is accepted by acceptance sampling is free of defects. 

8.In acceptance sampling, a manager can reach the wrong conclusion if the sample is not representative of the population it was drawn from. 

9.The probability of rejecting a good lot is known as consumer's risk. 

10.An acceptance sampling plan must define "good lots" and "bad lots" and specify the risk level associated with each one. 

11.The acceptable quality level (AQL) is the average level of quality we are willing to accept. 

12.The steeper an OC curve, the better it discriminates between good and bad lots.

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Finance Basics: In acceptance sampling a manager can reach the wrong
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