From the course: Everyday Statistics, with Eddie Davila

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Acceptance sampling

Acceptance sampling

From the course: Everyday Statistics, with Eddie Davila

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Acceptance sampling

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- [Instructor] You are an electronics manufacturer. You buy five thousand batteries from a supplier. They deliver all five thousand at one time. Should you accept them right away? Should you test a few of them? Should you test all of them? To find the right answer, organizations may rely on a statistical process called acceptance sampling. In acceptance sampling, the organization would take a random sample from the five thousand batteries. The random sample would be tested or measured against the desired specifications. If the random sample passes with a low number of defects, the entire lot of five thousand units would be accepted. If the random sample fails the test, there are two options. Either reject the entire lots of five thousand or individually measure all five thousand units. Remember, there are two parties in this transaction. The electronics manufacturer is the buyer. They want to root out any bad lots of batteries. Let's say they want to accept bad lots less than 10% of…

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