Suppose that a vendor ships components in lots of size 5000. A single-sampling plan with n=50 and c=2 is being used for receiving inspection. Rejected lots are screened, and all defective items are reworked and returned to the lot. a) Suppose that the fraction defective is 0.02, calculate the corresponding AOQ value. b) Management has objected to the use of the above sampling procedure and wants to use a plan with acceptance number c=0, arguing that this it more consistent with their zero-defects program. What do you think of this? c) Suppose the incoming lots are 0.5% nonconforming. What is the probability of rejecting these lots under both plans? Calculate the ATI at this point for both plans. Which plan do you prefer? Why? 1