As the supervisor in charge of shipping and receiving, you need to determine the average outgoing quality in a plant where the known incoming lots from your assembly line have an average defective rate of 3%.
Your plan is to sample 80 units of every 1,000 in a lot. The number of defects in the sample is not to exceed 3.
Such a plan provides you with a probability of acceptance of each lot of .79 (79%). What is your average outgoing quality.