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It is impractical to test or inspect all 2,500 bicycle units to know whether the bicycle units meet the standards of Bike Your Day. So,

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It is impractical to test or inspect all 2,500 bicycle units to know whether the bicycle units meet the standards of Bike Your Day. So, they randomly sample a small batch of bicycle units and infer that the sample will be representative of the entire units of bicycles and the results of testing the sample would be similar to the results as if the entire batch of bicycles were tested. Hence, the agreement between the two- party states that Bike Your Day will accept an AQL of 2% defective bicycle units and an LTPD of 8% bicycle units. The store owner has specified a low producer's risk of 1% and will accept the consumer's risk of 0.10. Determine the sample size and acceptance number of this plan. Solution: a = producer's risk : 1% B = consumer's risk = 10%

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