A manufacturing company changes an acceptance scheme on items from a production line before they are shipped. An inspector takes 1 item at random from a box of
25
items, inspects it, and then replaces it in the box; a second inspector does likewise. Finally, a third inspector goes through the same procedure. If any of the three inspectors find a defective, the entire box is sent back for 100% screening. If no defectives are found, the box is shipped.
(a) What is the probability that a box containing 4
defectives will be shipped?
(b) What is the probability that a box containing only 1
defective will be sent back for screening?
A manufacturing company changes an acceptance scheme on items from a production line before they are...
Problem 2. The Hit-and-Miss Manufacturing Company produces items that have a probability p of being defective. These items are produced in lots of 150. Past experience indicates that p for an entire lot is either 0.05 or 0.25. Furthermore, in 90 percent of the lots produced, p equals 0.05 (so p equals 0.25 in 10 percent of the lots). These items are then used in an assembly and ultimately their quality is determined before the final assembly leaves the plant....
Cloud 9 - Continuing Case Sharon Gallagher and Josh Thomas have assessed the internal controls at Cloud 9 as being effective at an entity level. This means that, at a high level, the company demonstrates an environment where potential material misstatements are prevented or detected. Answer the following questions based on the information presented for Cloud 9 in the appendix to this text and the current and earlier chapters. You should also consider your answers to the case-study questions in...