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A bank follows an acceptance sampling plan, where in a lot of 4000 credit accounts, a sample of 20 accounts are examined. If more than one defective account is found, the whole lot will be subjected to 100 percent inspection.
required
a. Construct the OC curve for this sampling plan.
b. Construct the AOQ curve for this plan using formula 10S-9 (page 13 of reading 2, Stevenson text), assuming defectives found during 100 percent inspection are replaced with good parts. What is the approximate AOQL?
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