Acceptance Sampling (glossary)
A statistical measure used in manufacturing quality control.
Source(s)
http://www.itl.nist.gov/div898/handbook/pmc/section2/pmc21.htm http://www.investopedia.com/terms/a/acceptance-sampling.asp
Discussion
A company cannot test every one of its products due to either the need for destructive testing requirements, or the volume of products being too large. Acceptance sampling solves this by testing a sample of product for defects. The process involves batch size, sample size and the number of defects acceptable in the batch. This process allows a company to measure the quality of a batch with a specified degree of statistical certainty without having to test every unit of product. The statistical reliability of a sample is generally measured by a t-statistic.
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