Multiple Choice
If the cost of replacing a defective DVD disk once it has been shipped is $2.00, while the cost of 100% inspection prior to shipment is $.40 each, at what point is he indifferent between 100% inspection and shipment without inspection?
A) 0% defectives
B) 2% defectives
C) 5% defectives
D) 20% defectives
E) 30% defectives
Correct Answer:

Verified
Correct Answer:
Verified
Q5: An OC curve shows:<br>A) average outgoing quality.<br>B)
Q5: A firm that makes plastic wrapping material
Q8: The AQL indicates:<br>A) acceptable quality level.<br>B) average
Q22: If she uses an acceptance sampling plan
Q29: A good sampling plan will occasionally reject
Q29: A lot can be "accepted" or "rejected"
Q30: An alternative to acceptance sampling is 100%
Q32: If the value for Average Outgoing Quality
Q35: An AOQ curve shows:<br>A) the maximum quality.<br>B)
Q47: Acceptance sampling is a form of inspection