The company accept a 5 risk of rejecting good batches and a, Finance Basics

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The company accept a 5 risk of rejecting good batches and a

Carn Bay Components make batches of a basic product in Toronto and transfer it to their main manufacturing plant in Chicago. When the product is made, an acceptance quality level of 1% defective is used, but transferred batches are allowed a maximum of 4% defective. The company accept a 5% risk of rejecting good batches, and a 10% risk of accepting bad batches. What would be a reasonable sampling plan for the component?

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