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A company uses a sample size equal to the square root of the lot size. If 1% or less of the items in the sample
A company uses a sample size equal to the square root of the lot size. If 1% or less of the items in the sample are defective, the lot is accepted; otherwise, it is rejected. Submitted lots vary in size from 1,000 to 5,000 units. Discuss the following issues: -If your AQL is indeed 1%, what is the type I error for the various lot sizes? -If you want to reject orders with 1.5%, what is the type II error for the various lot sizes? -If your actual quality is 1.2%, what is the ARL?
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