Essay
An acceptance sampling plan with n = 20 and c = 1 has been designed with a producer's risk of .12.
a. Was the value of p0 equal to .02, .03, .04, or .05?
b. What is the consumer's risk associated with this plan if p1 is .08?
c. Assume the consumer's risk found in (b) is unacceptably high. Which modification of the sampling plan will result in the greater reduction of the consumer's risk, increasing n to 30 or decreasing c to 0?
Correct Answer:

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a. p = .03 (with
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