Aceco has a contract with a supplier to ship parts that contain no more than three percent defects. When a large shipment of parts comes in, Aceco samples n = 150. Based on the results of the sample, they either accept the shipment or reject it. If Aceco wants no more than a 0.10 chance of rejecting a good shipment, the cut-off between accepting and rejecting should be 0.0478 or 4.78 percent of the sample.

Question

Quizplus · Accepted Answer

The cut-off of 4.78% is calculated using statistical methods to ensure that the probability of rejecting a shipment with a true defect rate of 3% (considered a "good" shipment) does not exceed 10%. This involves using the binomial distribution and normal approximation to set an appropriate threshold.

Aceco Has a Contract with a Supplier to Ship Parts