Suppose That Only Two Incoming Fraction Defective Levels, 2 Percent

Suppose that only two incoming fraction defective levels, 2 percent and 6 percent, are possible. The 2 percent incoming fraction defective level is twice as likely as the 6 percent. At a 2 percent incoming fraction defective, there's an 80 percent chance that a lot will be accepted. At 6 percent incoming fraction defective, there's a 20 percent chance that a lot will be accepted. Lots that are not accepted are subject to 100 percent sorting. What is average outgoing quality (approximately) ?

A) 1.60 percent
B) 1.47 percent
C) 1.20 percent
D) .73 percent
E) .80 percent

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