Swiss Watches, Ltd. purchases watch stems for their watches in lots of 10,000. Their sampling plan calls for checking 20 stems, and if 3 or fewer stems are defective, the lot is accepted.
a. Based on the sampling plan, what is the probability that a lot of 40% defective will be accepted?
b. Design an OC curve for incoming lots that have zero, 10%, 20%, 30%, and 40% defective stems.