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Sampling Plan for Seiko

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Seiko purchases watch stems for their watches in lots of 10,000. Seiko's sampling plan calls for checking 20 stems, and if 3 or fewer stems are defective, the lot is accepted.

a. Based on their sampling plan, what is the probability that a lot of 40 percent defective will be accepted?

b. Design an OC curve for incoming lots that have zero, 10 percent, 20 percent, 30 percent, and 40 percent defective stems.

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Solution Summary

This solution provides the calculations for plotting the OC curve and the the graph of the OC curve *with the probability of defective items and the percentage accepted) in an attached Word document.

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Seiko purchases watch stems for their watches in lots of 10,000. Seiko's sampling plan calls for checking 20 stems, and if 3 or fewer stems are defective, the lot is accepted.
a. Based on their sampling plan, what is the probability that a ...

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