A graphical representation that shows the risk of: (1) accepting bad lots and (2) rejecting good lots is called the:
A) indifference curve.
B) operating characteristic curvE.
C) sampling plan.
D) inspection curve.
E) operating inspection plan.

Question

Quizplus · Accepted Answer

The graphical representation that shows the risk of accepting bad lots and rejecting good lots is called the operating characteristic curve (OC curve). It is a plot of the probability of accepting a lot versus the fraction of nonconforming items in the lot, for a particular sampling plan. The OC curve helps managers to choose an appropriate sampling plan by balancing the risks of accepting bad lots and rejecting good lots. The other options (A, C, D, and E) are related to quality control and sampling plans but do not specifically refer to the graphical representation of risk associated with accepting or rejecting lots.

A Graphical Representation That Shows the Risk Of: (1) Accepting