Regarding the average outgoing quality level

Assignment Help Finance Basics
Reference no: EM13519501

MULTIPLE CHOICE 

1.Acceptance sampling 

1.a. is the application of statistical techniques to the control of processes 

2.b.was developed by Walter Shewhart of Bell Laboratories 

3.c.is used to determine whether to accept or reject a lot of material based on the evaluation of a sample 

4.d.separates the natural and assignable causes of variation 

5.e.all of the above 

2.Acceptance sampling's primary purpose is to 

1.a.estimate process quality 

2.b.estimate lot quality 

3.c.detect and eliminate defectives 

4.d.decide if a lot meets predetermined standards 

5.e.determine whether defective items found in sampling should be replaced 

3.An acceptance sampling plan's ability to discriminate between low quality lots and high quality lots is described by 

1.a. a Gantt chart 

2.b. the Central Limit Theorem 

3.c. a process control chart 

4.d. an operating characteristics curve 

5.e. a range chart 

4.Acceptance sampling 

1.a. may involve inspectors taking random samples (or batches) of finished products and measuring them against predetermined standards 

2.b.may involve inspectors taking random samples (or batches) of incoming raw materials and measuring them against predetermined standards 

3.c.is more economical than 100% inspection 

4.d.may be either of a variable or attribute type, although attribute inspection is more common in the business environment 

5.e.All of the above are true. 

5.Which of the following statements on acceptance sampling is true? 

1.a.Acceptance sampling draws samples from a population of items, tests the sample, and accepts the entire population if the sample is good enough, and rejects it if the sample is poor enough. 

2.b.The sampling plan contains information about the sample size to be drawn and the critical acceptance or rejection numbers for that sample size. 

3.c.The steeper an operating characteristic curve, the better its ability to discriminate between good and bad lots. 

4.d.All of the above are true. 

5.e.All of the above are false. 

6.Acceptance sampling is usually used to control 

1.a. the number of units output from one stage of a process which are then sent to the next stage 

2.b.the number of units delivered to the customer 

3.c.the quality of work-in-process inventory 

4.d.incoming lots of purchased products 

5.e.all of the above 

7.An operating characteristic (OC) curve describes 

1.a. how many defects per unit are permitted before rejection occurs 

2.b. the sample size necessary to distinguish between good and bad lots 

3.c. the most appropriate sampling plan for a given incoming product quality level 

4.d. how well an acceptance sampling plan discriminates between good and bad lots 

5.e. none of the above 

8.An operating characteristics curve shows 

1.a. upper and lower product specifications 

2.b. product quality under different manufacturing conditions 

3.c. how the probability of accepting a lot varies with the population percent defective 

4.d. when product specifications don't match process control limits 

5.e. how operations affect certain characteristics of a product 

9.Producer's risk is the probability of 

1.a. accepting a good lot 

2.b. rejecting a good lot 

3.c. rejecting a bad lot 

4.d. accepting a bad lot 

5.e. none of the above 

10.Which of the following is true regarding the relationship between AOQ and the true population percent defective? 

1.a. AOQ is greater than the true percent defective. 

2.b. AOQ is the same as the true percent defective. 

3.c. AOQ is less than the true percent defective. 

4.d. There is no relationship between AOQ and the true percent defective. 

5.e. The relationship between these two cannot be determined. 

11.Average outgoing quality (AOQ) usually 

1.a. worsens with inspection 

2.b. stays the same with inspection 

3.c. improves with inspection 

4.d. may either improve or worsen with inspection 

5.e. is the average quality before inspection 

12.A Type I error occurs when 

1.a. a good lot is rejected 

2.b. a bad lot is accepted 

3.c. the number of defectives is very large 

4.d. the population is worse than the AQL 

5.e. none of the above 

13.A Type II error occurs when 

1.a. a good lot is rejected 

2.b. a bad lot is accepted 

3.c. the population is worse than the LTPD 

4.d. the proportion of defectives is very small 

5.e. none of the above 

14.In most acceptance sampling plans, when a lot is rejected, the entire lot is inspected and all defective items are replaced. When using this technique the AOQ 

1.a. worsens (AOQ becomes a larger fraction) 

2.b. improves (AOQ becomes a smaller fraction) 

3.c. is not affected, but the AQL is improved 

4.d. is not affected 

5.e. falls to zero 

15.An acceptance sampling plan is to be designed to meet the organization's targets for product quality and risk levels. Which of the following is true? 

1.a. n and c determine the AQL. 

2.b. AQL, LTPD, α and β collectively determine n and c. 

3.c. n and c are determined from the values of AQL and LTPD. 

4.d. α and β are determined from the values of AQL and LTPD. 

5.e. None of the above is true. 

16.A lot that is accepted by acceptance sampling 

1.a. has more defects than existed before the sampling 

2.b. has had all its defects removed by 100% inspection 

3.c. will have the same defect percentage as the LTPD 

4.d. has no defects present 

5.e. All of the above are false. 

17.Which of the following statements about acceptance sampling is true? 

1.a. The steeper an OC curve, the better it discriminates between good and bad lots. 

2.b. Acceptance sampling removes all defective items. 

3.c. Acceptance sampling of incoming lots is replacing statistical process control at the supplier. 

4.d. Acceptance sampling occurs continuously along the assembly line. 

5.e. All of the above are true. 

18.Which of the following is true regarding the average outgoing quality level? 

1.a. An AOQ value of 1 is ideal, because all defects have been removed. 

2.b. AOQ is always greater than AQL but less than LTPD. 

3.c. AOQ rises (worsens) following inspection of failed lots. 

4.d. AOQ is very low (very good) for extremely poor quality lots. 

5.e. None of the above is true. 

Reference no: EM13519501

Questions Cloud

Analyze the economic feasibility of building the railroad : Analyze the economic feasibility of building the railroad, and outline arguments the company could present to the municipal town councils, the territorial government and the federal government in order to acquire permission to build the railroad and ..
Percent of the time the sample averages will fall inside : If a process has only natural variations, _________ percent of the time the sample averages will fall inside the ± 3σ  n (or ± 3σ x ) control limits.
What is the mean of the sampling distribution : Jars of pickles are sampled and weighed. Sample measures are plotted on control charts. The ideal weight should be precisely 11 oz. Which type of chart(s) would you recommend?
The statistical definition of six sigma allows : The statistical definition of Six Sigma allows for 3.4 defects per million. This is achieved by a Cpk index of
Regarding the average outgoing quality level : Which of the following statements about acceptance sampling is true
Acceptance sampling accepts or rejects an entire lot based : In acceptance sampling, a manager can reach the wrong conclusion if the sample is not representative of the population it was drawn from.
Averages of small samples not individual measurements : Mean charts and range charts complement one another, one detecting shifts in process average, the other detecting shifts in process dispersion.
Which of the types of auction would you recommend : If an auction house is selling products to risk neutral buyers, which of the types of auction would you recommend? If you are a potential buyer, what might your strategy be? Support your answers using economic analysis learned in this course.
The length of the snake vipera bertis : The length of the snake Vipera bertis (X), measured in centimeters, is assumed to be normally distrubuited with mean 63 and variance 22. The weight (Y) is measured on grams, can be calculated by using Y= -300 + 7x.

Reviews

Write a Review

Finance Basics Questions & Answers

  Currency forward prices

Suppose the current exchange rate between Germany and Japan is 0.02? ¥. The euro-denominated annual continuously compounded risk-free rate is 4% and the yen-denominated annual continuously compounded risk-free rate is 1%.

  What is the expected amount of the next dividend

The stock commands a market rate of return of 12.5% per year and sells for $22.47 a share. What is the expected amount of the next dividend? Please show work.

  What is the required return on the market

Assume that the risk-free rate is 5% and that the market risk premium is 6%. What is the required return on the market, on a stock with a beta of 1.0, and on a stock with a beta of 1.2.

  Calculating profitability index what is the profitability

calculating profitability index what is the profitability index for the following set of cash flows if the relevant

  Determine the ebitinterest coverage ratio of each firm

you are analyzing the leverage of two firms and you note the following all values in millions of dollars nbspdebtbook

  Is your finance professor right

You follow your broker’s advice and make a substantial investment in Hannah stock so that,considering only your risky investments, 60% is in the Natasha Fund and 40% is in Hannah stock. When you tell your finance professor about your investment, he s..

  Determining random sample from normal population

Random sample is attained from normal population with the mean of µ = 80 and standard deviation of σ = 8. Which of the following outcomes is more probable? Describe your answer.

  Determining the value of bond

What impact does number of years till maturity have on the value of bond? Mention three capital budgeting methods (decision rules) and rank them from least to most useful. Defend your ranking.

  A bond that has a 1000 par valueface value and a contract

a bond that has a 1000 par valueface value and a contract or coupon interest rate of 11.2. the bonds have a current

  Determine new funds needed to finance the growth

Owen's Electronics has 90 operating plants in seven southwestern states. Sales for last year were $100 million, and balance sheet at year end is same in % of sales to that of previous years.

  List and explain the points of financial impact on a

list and explain the points of financial impact on a company if it raises the credit standards required of its

  What is the cash flow related to the net working capital

All net working capital will be recouped when the project terminates. What is the cash flow related to the net working capital for the last year of the project?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd