We want to determine the AOQ for an acceptancesampling plan when the quality of the incoming lots in percent defective is 1.5%, and then again when the incoming percent defec-tive is 5%. The sample size is 80 units for a lot size of 550 units. Furthermore, P a at 1.5% defective levels is 0.95. At 5% incomingdefective levels, the P a is found to be 0.5. Determine the averageoutgoing quality for both incoming percent defective levels.

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Estimation

A new framework of data analysis where the new statistical methods are used for interpreting the results and analyzing the data is known as estimation in statistics.