Question 1
Consumer's risk is the probability of
◦ rejecting a good lot.
◦ shipping a bad lot.
◦ accepting a good lot.
◦ accepting a bad lot.
◦ rejecting a bad lot.
Question 2
The Central Limit Theorem
◦ controls the steepness of an operating characteristic curve.
◦ is the theoretical foundation of the c-chart.
◦ allows managers to use the normal distribution as the basis for building some control charts.
◦ states that the average range can be used as a proxy for the standard deviation.
◦ states that the average of assignable variations is zero.