The Quality Manager for Microelectronics,Inc.is concerned about the quality of the batch of several thousand IC's (integrated circuits) which his company is about to ship.If the cost of replacing a defective IC once it has been shipped is $5.00,while the cost of complete (100%) inspection prior to shipment is $.20 each,at what point is he indifferent between complete inspection or shipment without inspection?
A) 0% defectives
B) 4% defectives
C) 5% defectives
D) 9% defectives
E) 22% defectives
Correct Answer:
Verified
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