The quality assurance department at Malcomb Products must either inspect each part in a

Chapter 0, Problem 14

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The quality assurance department at Malcomb Products must either inspect each part in a lot or not inspect any of the parts. That is, there are two decision alternatives: inspect all the parts or inspect none of the parts. The proportion of parts defective in the lot, Sj , is known from historical data to assume the following probability distribution.

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