Suppose That Only Two Incoming Fraction Defective Levels, 4 Percent

Multiple Choice

Suppose that only two incoming fraction defective levels, 4 percent and 8 percent, are possible. These incoming fraction defective levels are equally likely. At a 4 percent incoming fraction defective, there's a 60 percent chance that a lot will be accepted. At 8 percent incoming fraction defective, there's a 20 percent chance that a lot will be accepted. Lots that are not accepted are subject to 100 percent sorting. What is average outgoing quality?

A) 40 percent
B) 20 percent
C) 10 percent
D) 4 percent
E) 2 percent