The Compound Hypergeometric Distribution and a System of Single Sampling Inspection Plans Based on Prior Distributions and Costs

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Abstract
The main results of this paper, apart from the limit theorems, were given in two lectures at the University of London, and in a seminar at Imperial College of Science and Technology, London, January 1959. The complete paper was presented for discussion in a meeting at Imperial College in February 1960. The paper reviews present sampling inspection plans for attributes placing particular emphasis on their underlying assumptions. A model is then proposed based upon prior distributions and costs, and optimum sampling plans are derived which minimize the average costs for any prior distribution. Tables and examples are provided.

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