Question

One-hundred percent inspection is justified when the ocst inspection is low?  

One-hundred percent inspection is justified when the ocst inspection is low?  

Homework Answers

Answer #1

NO, when the cost of inspection is low, even then it is not justified to inspect the 100% population of the production.

1. It reduces efficiency as the time consumed remains the same.

2. The results obtained from sampling inspection and 100% inspection are nearly the same.

3. The incremental cost is more than the incremental benefit of such an exercise.

4. The time saved by sampling inspection than 100% inspection can be utilized in other value creating or value supporting activities.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In a large university, 88 percent are right-handed and 12 percent are left-handed. One hundred students...
In a large university, 88 percent are right-handed and 12 percent are left-handed. One hundred students are selected at random with replacement. The probability that the proportion of left-handed individuals in the sample is within 2 percentage points of the population proportion of 12 percent is closest to (use normal approximation):
Seventy percent of all vehicles examined at a certain emissions inspection station pass the inspection. Suppose...
Seventy percent of all vehicles examined at a certain emissions inspection station pass the inspection. Suppose a random sample of 12 cars is selected. Assuming that successive vehicles pass or fail independently of one another calculate each of the following.(a) What is the probability that the number of the 12 cars selected that pass is within one standard deviation of the expected value?
Sixty-eight percent of all vehicles at a certain emissions inspection pass the inspection. Assuming that successive...
Sixty-eight percent of all vehicles at a certain emissions inspection pass the inspection. Assuming that successive vehicles pass or fail independently of one another. Calculate the following probabilities: At least one of the next 11 vehicles inspected fail. Exactly five of the next 11 vehicles inspected passes. Given that more than three of the next 11 vehicles inspected fails, what is the probability that no more than eight of the next 11 vehicles inspected fails?
When might discrimination in the workplace be justified? Might discrimination on the basis of gender or...
When might discrimination in the workplace be justified? Might discrimination on the basis of gender or race ever be justified?
One-hundred-eighty-day commercial paper can be bought at a 3.75 percent discount. What are the bond equivalent...
One-hundred-eighty-day commercial paper can be bought at a 3.75 percent discount. What are the bond equivalent yield and the effective annual rate on the commercial paper? Why do these rates differ?
Two hundred grams of liquid A is at a temperature of 100◦C. One hundred grams of...
Two hundred grams of liquid A is at a temperature of 100◦C. One hundred grams of liquid B is at a temperature of 0◦C. When the two liquids are mixed, the final temperature is 50◦C. Which material has a higher specific heat? 1. The specific heat of A is greater than that of B. 2. The specific heat cannot be defined when fluids are mixed in this way. 3. The specific heat of A is great than B if its...
What is paternalism? Is it ever justified? When? What does the formal principle of justice require?
What is paternalism? Is it ever justified? When? What does the formal principle of justice require?
Why could a manager be justified in ignoring fixed costs when making a decision about a...
Why could a manager be justified in ignoring fixed costs when making a decision about a special order? When would fixed costs be relevant when making a decision about a special order?
When, if ever, is an employee justified in blowing the whistle? What do you see as...
When, if ever, is an employee justified in blowing the whistle? What do you see as the most important factors that he or she needs to consider in deciding whether to blow the whistle?
When conducting an audit, accountants check invoices by drawing random samples for inspection. In one case,...
When conducting an audit, accountants check invoices by drawing random samples for inspection. In one case, the accountants failed to include any of 17 fraudulent invoices in their sample of 100 invoices. When the company failed, after the accountants had certified its financial statements, a creditor who had relied on the statements sued, claiming that the accountants had been negligent. The probability that none of the 17 invoices would be included in a random sample of 100 if there were...