Which acceptance number is most desirable


In a single sampling plan the sample size n =5. The submitted lot has on an average 25% defective items. Three acceptance numbers ( c = 0, c =1, and c=2) are being negotiated between the manufacturer and the buyer. Which acceptance number is most desirable from the manufacturer's viewpoint. You may use the following OC curve to find the answer.

Answer

c = 0

c = 1

c = 2

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Operation Management: Which acceptance number is most desirable
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