Develop a simple example to explain the differences between

Develop a simple example to explain the differences between Type A and Type B OC Curves. Please illustrate this example in its entirety

Solution

Type A OC curves gives the probability of acceptance for an individual lot coming from finite production. For this Hypergeometric distribution used to calculate the acceptance probabilities.

Tpye B OC curves give the probability of acceptance for lots coming from a continuous process, therefore the calculations are based on infinite lot size.. For using binomial distribution for evaluating, but approxmation to poisson.