Suppose that 12 components are sampled (n = 12) from a very large lot of components that have just been received. Assume that management decides to accept the lot only if no more than two nonconforming items are found in the sample; that is, c = 2. Although we do not have the actual percentage of nonconforming components in the lot, let us assume that this value is 5%. What is the probability that the lot will be accepted using this particular sampling plan? What happens if c = 1?
Use the information above and develop the OC curve. If AQL is 3% and LTPD is 15%, what will the risks of type I and type II errors be for the sampling plan (n = 12, c = 2) to be appropriate?