Problem

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 $3.0 \%$. Your plan is to sample 80 units of every 1,000 in a lot. The number of defects in a sample is not to exceed 3 . Such a plan provides you with a probability of acceptance of each lot of $0.79(79 \%)$. The average outgoing quality for the plant is $=\square \%$ (enter your response as a percentage rounded to two decimal places).

Solution

Step 1 :To determine the average outgoing quality, we need to consider the average defective rate and the probability of acceptance of each lot. The average defective rate is 3.0%, which means that out of every 1000 units, 30 are defective. The plan is to sample 80 units of every 1000 in a lot, and the number of defects in a sample is not to exceed 3. This plan provides a probability of acceptance of each lot of 79%. Therefore, the average outgoing quality is the product of the average defective rate and the probability of acceptance. Average Outgoing Quality = Average Defective Rate * Probability of Acceptance = 3.0% * 79% = 2.37% So, the average outgoing quality for the plant is 2.37%.

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