The estimated proportion nonconforming of the transmission


The initial inspection of transmission systems in automobiles is estimated to cost $0.50 per unit. If a nonconforming transmission is allowed in the assembly, the unit cost to eventually disassemble and replace it is $225.

The estimated proportion nonconforming of the transmission systems is 0.003. Using Deming's kp rule, what inspection policy should be used?

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Basic Statistics: The estimated proportion nonconforming of the transmission
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