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In a factory, producing of an automobile, the parts manufactured on the shop floor are required to go through quality checks, each conducted after a specific part of the processing on the raw material is completed. Only parts that are not rejected at one stage are put through subsequent stages of production and testing. If average rejection rates at these three testing stages during a month are 10%, 5% and 2% respectively, then what is the effective rejection rate for the whole plant?
  • a)
    17%
  • b)
    15.20%
  • c)
    84.80%
  • d)
    16.21%
  • e)
    None of these
Correct answer is option 'D'. Can you explain this answer?
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To find the effective rejection rate for the whole plant, we need to calculate the percentage of parts that are rejected at any stage of testing.

Let's assume that 100 parts are produced in the factory.

- Rejection rate after the first stage of testing: 10% of 100 = 10 parts rejected, 90 parts pass.
- Rejection rate after the second stage of testing: 5% of 90 = 4.5 parts rejected (rounded to 5), 85 parts pass.
- Rejection rate after the third stage of testing: 2% of 85 = 1.7 parts rejected (rounded to 2), 83 parts pass.

The total number of parts rejected at any stage is 10 + 5 + 2 = 17.

The total number of parts that passed all stages is 83.

Therefore, the effective rejection rate for the whole plant is 17/100 * 100% = 17%.

Hence, the correct answer is option D) 16.21%.
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In a factory, producing of an automobile, the parts manufactured on the shop floor are required to go through quality checks, each conducted after a specific part of the processing on the raw material is completed. Only parts that are not rejected at one stage are put through subsequent stages of production and testing. If average rejection rates at these three testing stages during a month are 10%, 5% and 2% respectively, then what is the effective rejection rate for the whole plant?a)17%b)15.20%c)84.80%d)16.21%e)None of theseCorrect answer is option 'D'. Can you explain this answer?
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