We want to determine the AOQ for an acceptance sampling plan when the quality of the incoming lots in percent defective is 1.5%, and then again when the incoming percent defective is 5%. The sample size is 80 units for a lot size of 550 units. Furthermore, Pa at 1.5% defective levels is 0.95.
At 5% incoming defective levels, the Pa is found to be 0.5. Determine the average outgoing quality for both incoming percent defective levels.