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As the supervisor in charge of shipping and receiving, you need to determine the average outgoing quality in a plant where the known incoming lots from your assembly line have an average defective rate of 3%. Your plan is to sample 80 units of every 1,000 in a lot. The number of defects in the sample is not to exceed 3. Such a plan provides you with a probability of acceptance of each lot of 79 (79%). What is your average outgoing quality?

Management Theories, Management Studies

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