Correct Answer - Option 2 : 687
Concept:
In Acceptance sampling process a small part or a fraction of the units/items is selected randomly from a lot and then selected units are inspected. The decision to accept the lot or reject the lot is based on information received by inspecting selected sample.
The average total inspection per lot is based on the incoming quality, probability of acceptance of lot (Pa) and the sample and lot sizes and is given by
Average total inspection (ATI) = n + (1 – Pa)(N – n)
Where,
N = Lot size
n = Sample size
c = Acceptance number
Pa = Probability of accepting lot
P = Quality of lot
Calculation:
Given N = 10,000, n = 89, c = 2, P = 0.01, and Pa = 0.9397
Average total inspection (ATI) = n + (1 – Pa)(N – n)
⇒ ATI = 89 + (1 – 0.9397) (10000 – 89) = 686.633 ∼ 687